2 Del. Admin. Code § 2244-I-1.11

Current through Register Vol. 28, No. 1, July 1, 2024

Section 2244-I-1.11 - Electronic Funds Transfer (EFT)

1.11.1 Definitions:

"Account Name" represents the name that the RDFI will credit with EFT funds being transferred. All funds are credited to the Delaware Transportation Trust Fund.

"Amount" identifies the dollar amount being remitted for each amount type by license and tax period. Since the computer program is right justified, the amount figure should always contain cents (cc).

"Amount Type" is used to identify the payment amount which follows. Identified values include "T" for tax, "P" for penalty and "I" for interest.

"Automated Clearinghouse (ACH)" is a system specifically established to facilitate the processing of electronic payments.

"Automated Clearinghouse Credit (ACH-Credit)" is defined as a transaction in which the taxpayer notifies its originating depository financial institution (ODFI) that it desires to make one or more payments to the receiving depository financial institution (RDFI).

"Bank Routing Number/Account Number" represents the bank routing number for Wilmington Trust Company and Delaware Transportation Trust Fund Account Number

"Electronic Funds Transfer (EFT)" is a generic term applied to any of several means of making payments from one party to another through a series of instructions and messages communicated electronically (via computer) among financial institutions.

"Fedwire" is an alternative method of transferring payment from the taxpayers ODFI to the States RDFI.

"Originating Depository Financial Institution (ODFI)" is defined as the financial institution used by the taxpayer to make one or more payments through a series of instructions or messages.

"Receiving Depository Financial Institution (RDFI)" is defined as the bank designated by the State of Delaware (Wilmington Trust Company) to receive electronic funds transfer (EFT) payments.

"Tax Payment (TXP) Format" is the standardized method of identifying one or more payment types within an EFT transmission.

The TXP Format contains the following segments which identify the data that pertains to an EFT transmission such as FEI-License Number, tax type, tax period, amount type, and amount.

A TXP format may contain payment of tax, interest and penalty if it is in payment of the same federal employer identification number-license number, tax period and tax code.

"Tax Period" is used to identify the tax period in which the payment covers. The digits from left to right represent year-month-date (YYMMDD) respectively.

"Tax type" represents which kind of payment that is being transmitted. Code "051" is used exclusively for payment of motor fuel (gasoline) and "052" is used exclusively for payment of special fuel.

"Taxpayer FEI-License Number" is the identification number used in the TXP format to identify the taxpayer originating the EFT payment. This identification number consists of your Federal Employer Identification number and the five (5) digit license number indicated in the upper right hand corner of the license issued to you by this Division. The FEI number and license number must be separated by a hyphen (-). A separate TXP format is required for each license held.

"Terminator (\)" is used to end a single TXP format.

"The separator" is used to separate fields within a TXP format. The character to be used as a separator is the asterisk (*).

"Total Payment" represents the total monies that are being transferred by the taxpayers bank to the Delaware Transportation Trust Fund. The total amount of the transfer must agree with the payment for each EFT segment.

"Transaction" is defined as the transmittal of the EFT payment accompanied with as many TXP formats as required to completely identify all components of the payment. Refer to "Electronic Funds Transfer Payment Requirements" under Section 11.3.1.

1.11.2 Electronic Funds Transfer Payment Requirements:

1.11.2.1 Every company/firm with a combined (motor fuel and special fuel) minimum monthly tax liability of $20,000 must electronically transmit their tax payments utilizing the ACH-Credit transfer method and follow the tax payment (TXP) format indicated in Section 1.11.3.

1.11.2.2 Any newly licensed company/firm who meets the $20,000 monthly minimum tax threshold requirement must implement the EFT program within two months of receipt of the license.

Any company/firm currently licensed who meets the $20,000 monthly minimum tax threshold requirement for the first time must implement the EFT tax payment program within two months of notification by this Division.

1.11.2.3 Any company/firm that has a combined minimum monthly tax liability of less than $20,000 may electronically transmit their tax payments following the same procedures mentioned in 1.11.2.1 and 1.11.2.2.

1.11.2.4 If payment of penalty and/or interest is for a period other than the tax payment period, a separate TXP format transmission is required for the penalty and/or interest payment.

1.11.2.5 Should a monthly tax period involve a zero payment or no activity tax return, a TXP payment format must be transmitted indicating "0" in the appropriate amount fields.

1.11.2.6 The use of EFT payments, whether required by regulation or on a voluntary basis, cannot be discontinued until requested and approved by the Director.

1.11.2.7 In cases of emergency, the Division will allow the use of Fedwire to electronically transmit tax payments. Prior approval must be obtained from the Department Secretary at least two (2) days prior to the due date so that tax data information may be obtained in order to credit the proper taxpayer account.

1.11.2.8 In lieu of making monthly EFT payments, tax returns and remittances may be hand delivered prior to 12:00 noon (Eastern Standard Time) on or before the due date.

1.11.2.9 All EFT payments must be received by the Receiving Depository Financial Institution before 2:00 p.m. (Eastern Standard Time) on or before the due date. An official state holiday calendar will be distributed annually to all licensed motor fuel and special fuel accounts. When the due date falls on a weekend or state holiday, the due date of the tax payment shall be the next following business day of the state.

1.11.2.10 In order to ensure that tax payments are timely credited to the state account, the Division recommends that the taxpayer notifies its originating bank (ODFI) at least two or three days prior to the impending EFT transaction. A pre-note (test) of the EFT system should take place at least ten days prior to the first EFT transmission in order to establish proper EFT transaction procedures.

1.11.3 Tax Payment (TXP) Format Requirements:

1.11.3.1 The following tax payment format must be used by required EFT accounts and those accounts who elect the EFT program on a voluntary basis.

1.11.4 Tax Report/Schedule Requirements:

1.11.4.1 Tax reports, including applicable schedules, must continue to be filed (U.S. postmarked) on or before the 25th of the month following the tax report month in order to be considered timely filed.

2 Del. Admin. Code § 2244-I-1.11