[Code of Federal Regulations]
[Title 31, Volume 2]
[Revised as of July 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 31CFR203.12]

[Page 16]
 
                  TITLE 31--MONEY AND FINANCE: TREASURY
 
         CHAPTER II--FISCAL SERVICE, DEPARTMENT OF THE TREASURY
 
PART 203_PAYMENT OF FEDERAL TAXES AND THE TREASURY TAX AND LOAN PROGRAM--Table 
 
                Subpart B_Electronic Federal Tax Payments
 
Sec.  203.12  Future-day reporting and payment mechanisms.

    (a) General. A financial institution may receive an ACH debit entry, 
originated by the TFA at the direction of the taxpayer; or, a financial 
institution may originate an ACH credit entry, at the direction of the 
taxpayer. Taxpayers will be credited for the actual amount received by 
Treasury.
    (b) ACH debit. A financial institution receiving an ACH debit entry 
originated by the TFA shall, as applicable:
    (1) Timely verify the account number and account type contained in 
an ACH prenotification entry;
    (2) Timely and properly return a prenotification entry that contains 
an invalid account number or account type, or otherwise is erroneous or 
unprocessable;
    (3) Timely and accurately notify the TFA of incorrect information on 
entries received, using a Notification of Change entry; and
    (4) Timely and accurately return an entry not posted, including but 
not limited to, a return or a contested dishonored return for acceptable 
return reasons, as set forth in the procedural instructions.
    (c) ACH credit. A financial institution originating an ACH credit 
entry at the direction of a taxpayer shall:
    (1) At the request of the taxpayer, originate either an ACH 
prenotification containing the taxpayer's identification number or a 
zero dollar ACH entry with the appropriate addenda record. Additional 
format information is contained in the procedural instructions;
    (2) Format the ACH credit entry in the ACH format approved by 
Treasury for Federal tax payments;
    (3) Originate an ACH credit entry by the appropriate deadline, as 
specified by the FRB or Treasury, whichever is earlier, in order to meet 
the tax due date specified by the taxpayer; and
    (4) Provide the taxpayer, upon request, a transaction trace number, 
or some other method to trace the tax payment.
    (d) ACH credit reversals. Reversals may be initiated for a duplicate 
or erroneous file or entry. No advance approval from, or notification 
to, the IRS is required when originating an ACH credit reversal. 
Documentation of reversals shall be made available as set forth in the 
procedural instructions.