DRS: Electronic Funds Transfer

Electronic Funds Transfer

Electronic Funds Transfer (EFT) is an electronic method of making a payment. An EFT is handled through the Automated Clearing House System (ACH), a nationwide network that electronically transfers funds. 
  • Employers whose annual wage withholding liability exceeded $2,000.00 for the 12 month period ending the preceding June 30.

  • Taxpayers whose prior year liability for a particular tax exceeded $4,000.00 for the 12 month period ending the preceding June 30 for monthly and quarterly tax liabilities or for the preceding taxable year for annual tax liabilities. 

  • Taxpayers who are not required to make payment by EFT, may do so voluntarily.

There are TWO METHODS  of EFT payments, ACH DEBIT and ACH CREDIT .

1-ACH DEBIT METHOD
  • Direct Payment-Using this method, taxpayers file their return electronically using the TSC program and select a  payment date (the date of payment can be any date up to the due date).   DRS will electronically debit the selected bank account for the funds on the day that the taxpayer selects.  That means that with  1 transaction  the return is filed and payment is scheduled.  There is no pre-registration requirement to use this option.
Taxpayers can now make payments on the Web for their tax billings.    TSC now has a Direct Payment Option that allows taxpayers to transfer funds by authorizing the Department of Revenue Services and its designated `Financial Agents to electronically debit your bank account for the amount of the tax payment on the date you choose.  You need to verify that your banking information is correct, choose the payment date, and agree to the terms and the conditions. 
  • The following taxes can be paid using the Direct Payment Option:   Admissions and Dues; Admissions and Dues with return; Alcoholic Beverage; Bottle Deposit; Business Entity with return; Business Use; Community Antenna; Corporation Estimated; Diesel Fuel; Domestic Insurance; Dry Cleaning; Electric & Power;  Foreign Insurance; Gas & Electric; Health Care Center; Occupational; Nursing Home Provider; Petroleum Gross Earnings; Steam Railroad; Rental Surcharge; Room Occupancy; Sales & Use; Solid Waste; Tobacco Products; Tourism; Unrelated Business; Payroll Withholding; Non-Wage Withholding; Connecticut Composite Income Tax; Resident, Nonresident and Part-Year Resident Trusts and Estates; Nonresident/Part-Year Resident Tax; Amended Income Tax Return; and Income Tax Bill Payments.
2-ACH CREDIT METHOD
  • Taxpayers must pre-register with the EFT Unit prior to using this option.   The taxpayer initiates an electronic payment through their banking institution. This payment must be sent in the ACH standard CCD+TXP format.  The taxpayer may also electronically file the return using the TSC program.

*** IF YOU ARE REQUIRED TO PAY TAXES BY EFT, YOU MUST INITIATE YOUR TRANSACTION ON OR BEFORE THE DUE DATE OF THE TAX.  THIS APPLIES TO ACH DEBIT USERS ONLY. 

****ACH CREDIT  METHOD USERS SHOULD  CONSULT WITH THEIR BANKING INSTITUTION FOR GUIDELINES TO ENSURE THAT PAYMENT IS RECEIVED TIMELY.!!! 

  • For detailed information on EFT and a list of Frequently asked Questions, please review IP 2013(15), Paying Connecticut Taxes by Electronic Funds Transfer. 
  • To register for EFT, use EFT-1 , Authorization Agreement for Electronic Funds Transfer.
  • Please refer the calendar on the home page for the due dates for initiation of payments.   

The EFT Unit's e-mail address is:  ct.eft@po.state.ct.us