Electronic Funds Transfers "Eft" - Sales Tax Fact Sheet 159 (Page 2 of 2) in pdf

Late payment

Two ways to register

•

5 percent of the tax due if payment is 1 to 30 days late

You must mail or fax a completed authorization form

•

10 percent if it is 31 to 60 days late

to register for EFT. To receive the authorization form,

•

15 percent if it is more than 60 days late

call 651-296-7350 or toll free 1-800-657-3696. When

you register with the Department of Revenue to pay elec-

Payment method penalty - For Associated and

tronically, you may choose one of the following methods.

Mandatory accounts, a 5 percent penalty applies to pay-

ments not made by EFT (even if a paper check is sent

Debit method - To authorize payments, call the toll-free

timely or early).

number shown in your EFT information packet. Payments

must be called in no later than 5:30 PM (Central Time)

Underestimating - Mandatory accounts only: if you

one business day before the funds are due at the Minne-

don’t pay the minimum amount due, a late payment pen-

sota Department of Revenue. The Department’s ACH

alty on the underpayment will apply. See Estimated pay-

Debit Option Transfer services are available 24 hours a

ments on the front.

day, 7 days a week. However, if a payment is due on

Monday it must be called in before 5:30 PM (Central

June estimate (Mandatory payers) - If no June

Time) on the previous Friday. Weekends and holidays are

estimated payment is made, the penalty is 7.5 percent of

not business days. Payments may be called in as much as

the actual liability. If the June estimated payment is re-

six months in advance and will be transferred on the date

ceived timely but doesn’t meet one of the estimated pay-

you specify. The state pays the transaction costs for this

ment requirements, penalty is figured by using 75 percent

method.

of the actual June liability, subtracting the estimated pay-

ment made, and multiplying the result by 10 percent.

Credit method - To authorize payment with a credit

Interest is figured on the total tax and any penalty.

transfer, your bank must transfer funds to the state's bank

account. The cost of each transaction is charged to you,

References:

as the originator of the credit transfer. Check with your

M. S. 289A.20 Subd 4(c)

bank for their cut-off time and to determine how long a

M. S. 270.771

transfer will take. (Some banks require up to three bank-

M. S. 289A.60, Subd 21, Penalty for failure to make

ing days to initiate the transfer.)

payment by EFT

Penalties

Internet access!

Remember: transfers using the debit method take one

If you can access the Internet, the EFT Authorization

banking day to process; credit method may take up to

Form, sales tax fact sheets and many other tax forms are

three banking days to process. You must call in your

available electronically!

transfer before the due date. If you call your transfer in

on the due date, the payment will be late and a penalty

Internet address:

will be assessed.

This information can be viewed and printed in PDF for-

Fed-wire. This is a same-day banking process that can

mats. Acrobat Reader is included FREE. Internet links to

be used to avoid penalty. You must call the EFT Unit

the federal forms are also available.

at 651-296-7350 or toll free 1-800-657-3696 to get

fed-wire instructions.

This fact sheet is a tax information bulletin intended to help you become more familiar with Minnesota tax laws and your rights and

responsibilities under the tax laws. Nothing contained in this fact sheet supersedes, alters, or otherwise changes any provisions of the

Minnesota tax law, administrative rules, court decisions, or revenue notices.

Electronic Funds Transfers "Eft" - Sales Tax Fact Sheet 159 Page 2

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