Banking FAQs

In this article:

• Why do you need my bank account information?
• Can TaxJar file for me if my bank isn't located in the United States?
• What kind of bank account should I use?
• Can I use different bank accounts for different states?
• How and when will my bank account be debited?
• How can I avoid ACH debit blocks?
• What should I do if my payment is declined by the state?
• How do I update my bank account information?

Why do you need my bank account information?

When TaxJar files your sales tax return, we provide your banking information to the state so they can withdraw the amount of tax due from your account.

Can TaxJar file for me if my bank isn't located in the United States?

A US-based bank account is required since many state taxing authorities only accept ACH debits from a domestic bank account. If you’re an international seller and unable to obtain a US bank account, learn about your options here. 

What kind of bank account should I use?

As long as your bank is based in the US and allows for ACH debits, it doesn't need to be a business or corporate bank account.

Some states (such as Virginia and New Jersey) require a checking account for tax payments. If you'd like TaxJar to file returns for one of these states, then you'll need to use a checking account for all the returns TaxJar files for you.

Can I use different bank accounts for different states?

No, a single bank account must be used for all returns. The account details entered when setting up your first filing will apply to all filings.

How and when will my bank account be debited?

When TaxJar files your return with the state, we also send your bank account information. Because the state pulls the funds directly from your account, we cannot predict the exact date the withdrawal will occur, but we guarantee that your filing and payment will be submitted on time. 

How can I avoid ACH debit blocks?

Many financial institutions implement debit blocks to protect bank accounts from unauthorized electronic charges.  If your account has a debit block, you'll need to provide your bank with each state's ACH originator identification number to add it as an approved payee. 

The table below includes originator IDs for most states:

• States marked with an asterisk(*) do not publicize their originator IDs, so you'll need to call the DOR to obtain them.
• We strongly recommend confirming with the state that these originator IDs are still current.

What should I do if my payment is declined by the state?

If there's a problem with your payment, the state department of revenue may notify you directly by mail, email, phone call, or via your state e-file account. Because TaxJar is only able to submit your payment information once, you'll need to resolve any issues with the taxing authority directly: 

1. Contact your bank to release the payment to the state (If your account has a debit blocker, follow these instructions.)
2. Log into your state account to make the payment or contact the state directly to complete your payment.

If you need to make a change to your bank account or routing number for AutoFile, you can do this by editing the bank details section of your AutoFile Dashboard page.