Section 280-RICR-20-30-1.5 - DefinitionsA. "ACH" or "Automated clearing house" means a central distribution and settlement point for the electronic clearing of debits and credits between financial institutions. An automated clearing house may be a Federal Reserve Bank or any organization with an operating agreement with Nacha that operates as a processing agent for ACH transactions between financial institutions.B. "ACH credit" means an electronic transfer of funds using the ACH network that is originated by a taxpayer through its financial institution to credit (deposit) funds to a designated State of Rhode Island bank account and debit (withdraw) funds from the taxpayer's bank account for a specified payment amount.C. "ACH debit" means an electronic transfer of funds initiated by Rhode Island Division of Taxation, upon taxpayer instruction, to debit a taxpayer's designated bank account and credit funds to a designated State of Rhode Island bank account. 1. Note: Any payment initiated through the Division of Taxation taxpayer portal, Modernized Electronic Filing (MEF) system, or remitted in bulk through a preauthorized method is deemed to be filed by an electronic method.D. "Addenda record" means an ACH record type that carries the supplemental data needed to completely identify a taxpayer's tax payment.E. "Effective date" means the date in which the originator submits payment in good faith to the Division of Taxation in a manner prescribed by the Division. When unknown, the effective date will be the settlement date.F. "EFT" or "Electronic funds transfer" means a standard ACH funds transfer to credit or debit a bank account or wire transfer. Electronic funds transfer does not include payments by check, draft, or similar paper instrument.G. "Electronic filing" means the submission of a tax return through the Division of Taxation online taxpayer portal, the Modernized Electronic Filing (MEF) system administered by the Internal Revenue Service (IRS), streamline sales tax return, and bulk electronic filings by third party providers.H. "Electronic payment" means submission of payments through the Division of Taxation online taxpayer portal, payments through MEF, single or bulk electronic payments by third party providers, payments made by EFT, and payments through an authorized credit card processor.I. "Electronic transmission" means either Electronic Filing or Electronic Payment as applicable.J. "Larger business registrant" means a person who:1. Operates as a business whose combined annual liability for all taxes administered by the Division of Taxation for the entity is or exceeds five thousand dollars ($5,000.00); or2. Operated as a business whose annual gross income is over one hundred thousand dollars ($100,000.00) for the entity.K. "Look back period" means the previous calendar year used by the Rhode Island Division of Taxation in order to determine whether electronic transmission thresholds, based on reported tax liability and/or reported gross income, are met or exceeded.L. "MEF" means the Modernized Electronic Filing system through a tax preparation software preapproved by the Division of Taxation.M. "Nacha" means the national regulatory body that establishes the standards, Rules, and procedures governing the ACH Network.N. "Person" as used in this Regulation means, but is not limited to, any individual, firm, partnership, general partner of a partnership, limited liability company, registered limited liability partnership, foreign limited liability partnership, association, or corporation responsible to file and/or pay a tax liability to the State of Rhode Island.O. "Settlement date" means the date an electronic payment is deposited in a bank account designated by the State of Rhode Island for deposit of electronic tax payments.P. "Wire transfer" or "Bank wire" means the same day transfer of funds from a depositor's account to a State of Rhode Island bank account. Fed-wires do not contain a standard addenda record and may be used only in an emergency situation with prior approval from the Division of Taxation.280 R.I. Code R. § 280-RICR-20-30-1.5
Amended effective 3/2/2020
Amended effective 2/26/2023