Funds Transferred (Eft) Program For Tax Payments Instructions

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DR 5782 (09/13/12) Web
Colorado Department of Revenue Electronic
Funds Transferred (EFT) Program For Tax Payments
The Colorado Department of Revenue requires all organizations filing fuel, cigarette or tobacco taxes, severance
withholding tax, employers with annual wage withholding liabilities greater than $50,000.00, and businesses with annual
state sales tax liabilities greater than $75,000.00 to pay through Electronic Funds Transfer (EFT). Other individuals and
organizations may also choose to pay electronically. Electronic payments offer you a number of benefits:
The cost and time to write checks is eliminated.
You know exactly when your account will be debited.
You are assured that the funds are received on time, every time.
You may also register to pay other taxes electronically. For all taxes except wage withholding, estimated income,
income, income extensions, estimated severance and PUC fixed utility fees you will still need to file a tax return.
You must file a complete sales and use tax return at the same time you make a sales/use tax payment.
Electronic Payment Options
Colorado's Electronic Funds Transfer program offers two methods of electronic payment:
Automated Clearing House Debit (ACH debit), Web payment and telephone options.
Automated Clearing House Credit (ACH credit).
Automated Clearing House Debit
To remit taxes via ACH debit e-check, access our Web site or place a call to a toll-free number. Both processes will prompt
you to enter seven pieces of information: your EFT identification number, your PIN (Personal Identification Number), tax
type code, filing period ending date, dollar amount owed, the settlement/effective date, and your phone number. The
systems, in return, provide a reference number as proof of payment. The funds are withdrawn from your account as soon
as the following day. We offer payment warehousing which provides the opportunity to designate a payment date up to
365 days in the future, allowing you to place your payment in advance of the due date and have your funds withdrawn on
the specified date. The Department of Revenue pays for the transaction.
Our Web feature allows you to make tax payments, access your phone and Web payment history, change your PIN, and
add or change banking information online through a secured Web site. Please check out our Web site at
and select "Electronic Payments" under "Online Services."
Automated Clearing House Credit
To initiate an ACH credit, instruct your financial institution to transfer funds from your account to the Department of
Revenue's depository account. The ACH credit must be formatted utilizing the tax payment (TXP) convention within
the addenda record of a CCD+ application. The ACH credit must be initiated on, or before, the due date; the funds are
transferred to be received the next day by the Department of Revenue. The TXP addenda convention has been provided
in this guide. Your financial institution may charge you for the transaction. Since some financial institutions can not
originate ACH transactions, please contact them for more information.
How To Enroll
To participate in the EFT program, you must complete an "Authorization for Electronic Funds Transfer (EFT) for Tax
Payments" Form (DR 5785). The form may be completed on the Web or a paper document can be submitted.
Advantages of enrolling via the WEB include:
It only takes the system a few minutes to process your application. It will provide a message that will include your
EFT number(s)
If your are registering for ACH Debit, an e-mail containing your Personal Identification Number (PIN) will be sent to
you same day. You will be able to enter your banking information online and make a payment the following business
day.
If you are registering for ACH Credit, you will be provided with a letter online that contains State of Colorado
Department of Revenue bank information and file layout for ACH Credit. You will be able to work with your bank to
send any transactions through them using the proper format.
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