City of Columbus

Income Tax FAQs

ACH Credit Transactions

• Can I choose between different types of ACH EFT payments?
  Yes. You can choose either the ACH Debit or ACH Credit payment methods.
• Can I make one ACH Credit payment for more than one city?
  No. Because the Columbus Income Tax Division administers city income tax for several other municipalities, a separate payment is required for each municipality using a four digit tax payment type code. A current list of the tax payment type code is available on our web site.
• Can the City debit my account without my knowledge or permission?
  No. The ACH Debit method can only be initiated by using your City Tax ID number along with your unique PIN. If you use ACH Credit method, your payments are initiated by you through your financial institution.
• Is EFT required or voluntary?
  Currently, EFT is a voluntary method of remitting the income tax. Certain taxpayers may be mandated in the foreseeable future, but we encourage everyone to participate. There is no minimum threshold for paying by EFT.
• What Constitutes Timely EFT Payment?
  The effective date of the payment must be on or before the tax due date. Originate the transaction in sufficient time for the payment to arrive on or before the due date of the return or payment.
• What if I have a Payroll Service Provider, can I utilize the EFT payment program?

  It will depend upon the Payroll Service Provider. Their most common form of EFT payment is ACH Credit. Currently, we do not mandate that Payroll Service Providers pay by EFT.

  If your Payroll Service Provider offers this service, it is the provider’s responsibility to submit the ACH Credit Registration Form with the consent of the taxpayer. All Tax Service Provider’s clients are required to register for a unique ACH Credit Registration Number to be included in the Payroll Service Provider’s ACH credit transmission.

• What is an ACH Credit Registration Number?
  An ACH Credit Registration Number is assigned upon completion of the registration filing process. This ACH Credit Registration Number, consisting of one alpha and five numeric characters, is unique for each taxpayer and is sent in element TXP10 of the Tax Payment detail segment of the addenda record. It is imperative that the Taxpayer ACH Credit Registration Number be included in the tax payment details to provide proper crediting of funds and taxpayer identification.
• What is Electronic Funds Transfer (EFT)?
  EFT is an electronic method for instructing financial institutions to debit or credit customer accounts and thereby affect a transfer of funds from one account to another. EFT methods for moving funds are faster and more secure than paper checks.
• What is the most common EFT payment method?
  The ACH Debit method is the most common method used. The Columbus Income Tax Division recommends the ACH Debit method because of the simplicity and cost savings to the taxpayer.
• What methods of EFT does the City accept?

  ACH (Automated Clearing House) Debit – The ACH debit method allows you to transfer funds by authorizing us to electronically debit (electronically withdraw funds from) your bank account for the amount you report via using the city’s E-File/E-Pay Program. To access the Columbus Tax E-File/E-Pay system, you must have an established City tax account and a City-assigned PIN. Your account will be debited ONLY upon your initiation, ONLY for the amount you specify, and ONLY on the date you specify. To ensure a successful transaction, check with your banking partner to determine if you have a debit blocker in place.

  ACH Credit – ACH Credit is a banking term that applies to the electronic transfer of funds in which you, the customer, initiate the transaction by instructing your bank to transfer funds from your bank account to the City. Your banking institution may require you to install software on your computer to create a file that the bank can use to process the ACH-Credit transaction. There will be fees charged to you by your banking institution for costs associated with processing each ACH-Credit transaction.

• What steps are necessary to become an EFT taxpayer?

  If you have an established tax account with the Columbus Income Tax Division or are a registered tax practitioner or payroll service on file with our office you are eligible to receive a unique PIN for accessing the E-File/E-Pay program. If you do not already have an established account you may complete the online IT47 New Account Questionnaire. It may take up to thirty (30) days after your tax account has been successfully established for you to be eligible to receive a City-assigned PIN. If you have an existing tax account and have not received your PIN by U.S. Mail or have lost the PIN you may request one by sending an email with you name, address and City tax account number to taxdata@columbus.gov After receipt of this complete information your unique PIN for your tax account will be sent to you by U.S. mail. No PIN numbers will be distributed by phone or email.

  To use the ACH Credit method, you must register for the ACH Credit Electronic Filing Program with the submission of the ACH Credit Registration Form. Once your application has been accepted and processed, you will receive a confirmation letter with your unique ACH Credit Registration Number. Also included will be our Electric Funds Transfer Taxpayers Guide detailing additional information your financial institution needs before it can initiate ACH credit transactions. You will have to work with your financial institution before initiating ACH credit transactions.

• Where do I report my ACH payments on my city return?
  When filing a city tax return, you will claim EFT payments as prior payments on a withholding return (IT-11) or as estimated payments on Line 2 of the business return (BR-25) or individual return (IR-25). You may submit your return electronically via the E-File/E-pay application or by mail. If, after completing the appropriate form, additional tax due is shown, payment may be made by a separate EFT submission or by manual check. If a manual check is issued for payment of tax due, a hard copy return must accompany the remittance.