State of Rhode Island                               
                                     Department of Revenue
                                           Division of Taxation
                                              One Capitol Hill
                                     Providence,   RI02908-5800

        AUTHORIZATION AGREEMENT FOR ELECTRONIC FUNDS TRANSFERS

FEDERAL IDENTIFICATION NUMBER:     
TYPE OF TAX:
        [   ]  WITHHOLDING                         [   ]  SALES/USE 
        [   ]  CORPORATION                         [   ]  INSURANCE PREMIUMS
        [   ]  GASOLINE/MOTOR FUEL                 [   ]  TANGIBLE PERSONAL PROPERTY
        [   ]  BANK DEPOSITS                       [   ]  PUBLIC SERVICE GROSS EARNINGS
        [   ]  BANK EXCISE                         [   ]  CIGARETTE STAMP
        [   ]  CONSUMER USE TAX                    [   ]  LITTER-BEVERAGE CONTAINER  
        [   ]  HOTEL TAX                           [   ]  HEALTHCARE TAX
        [   ]  LOCAL MEALS & BEV TAX               [   ]  ALCOHOLIC BEV IMPORT SERVICE FEE
        [   ]  UNIFORM OIL RESPONSE & PREV         [   ]  WARWICK PARKING TAX
        [   ]  PASS-THROUGH                        [   ]  COMPOSITE INCOME TAX
        [   ]  TOBACCO PRODUCTS                    [   ]  E-911 $0.26 WIRELESS SURCHARGE
        [   ]  E-911 $1.00 WIRELESS SURCHARGE      [   ]  E-911 $1.00 WIRELINE SURCHARGE
        [   ]  TEL-COM EDUCATION ACCESS FUND       [   ]  OUTPATIENT HEALTHCARE FACILITY SURCHARGE
        [   ]  HEALTHCARE IMAGING SERVICES SURCHARGE [   ]  HARD-TO-DISPOSE MATERIAL TAX
        [   ]  PREPAID WIRELESS TELECOMMUNICATIONS CHARGE
                         Sections A & B below must be completed by all taxpayers

A. COMPANY DATA

        COMPANY NAME: _________________________________________________________________
        D/B/A: ____________________________________________________________________________
        ADDRESS:_________________________________________________________________________
        CITY: ___________________________________  STATE: __________ ZIP CODE: ______________
        TELEPHONE NUMBER: (________)_____________________     FAX NUMBER: (________)_____________________

B. CONTACT PERSON(S):

        Primary EFT contact person:
        NAME: __________________________________________  TITLE: ___________________________
        ADDRESS:_________________________________________________________________________
        CITY: ___________________________________  STATE: __________ ZIP CODE: ______________
        TELEPHONE NUMBER: (________)_____________________ Extension _______________
        FAX NUMBER: (________)_____________________
        E-MAIL ADDRESS: ________________________________________________

        Secondary EFT contact person:
        NAME: __________________________________________  TITLE: ___________________________
        TELEPHONE NUMBER: (________)_____________________ Extension _______________
        FAX NUMBER: (________)_____________________
        E-MAIL ADDRESS: ________________________________________________
RI-EFT-1
06152012

                   CHOOSE ONLY ONE OF THE TWO PAYMENT OPTIONS BELOW

C.  ACH DEBIT OPTION 
This section is to be completed only if you choose the ACH DEBIT OPTION.
TWO DEBIT OPTIONS AVAILABLE:
1. INTERNET FILING:
Simply log onto https://www.ri.gov/taxation/business/index.php and click on the first time user link. This is the only EFT registration
process that you need to do.
Do not complete or remit this form to the RI Division of Taxation EFT Section.

2. TELEPHONE:
Complete Section C and remit authorization agreement to the RI Division of Taxation EFT Section.

If ACH Debit is chosen, you authorize the Rhode Island Division of Taxation to present debit entries to your bank for the tax identified
on the front.  Only you can initiate a debit by calling the state's service bureau and indicating the amount of tax to be paid by electronic
funds transfer.

Enclose a copy of a voided check or have an AUTHORIZED REPRESENTATIVE of your bank complete and sign this section of the
form.
BANK NAME:
ADDRESS:
CITY:                                                          STATE:                           ZIP CODE:
BANK ACCOUNT #:                                 BANK ROUTING/TRANSIT NUMBER:

[  ]     CHECKING           [  ] SAVINGS

         Printed Name of Bank Representative                                  Telephone Number

         Signature of Bank Representative                                          Date

D.  ACH CREDIT OPTION
        This section is to be completed only if you choose the ACH CREDIT OPTION.

        All ACH CREDIT must be initiated in the required CCD+ and TXP format.  Any payments not received in that format may 
        be considered late. 
Example:                                Generic TXP addendum record CCD format

FIELD #: FIELD NAME:                    DATA ELEMENT TYPE:              FIELD LENGTH:           COMMENTS:
         Segment Id                                                                             TXP
         Field Separator                                                                        *
TXP01    Taxpayer Id                         AN                               11                12345678900
         Field Separator                                                                        *
TXP02    Tax Type Code                       ID                               5                 55555
         Field Separator                                                                        *
TXP03    Tax period End Date                 DT                               6                 YYMMDD
         Field Separator                                                                        *
TXP04    Amount Type                         ID                               1                 T(Tax)
         Field Separator                                                                        *
TXP05    Amount Paid                         N2                               1/10              $$$$$$$$cc
         Record Terminator                                                                               /
This form must be completed and mailed to:   Electronic Funds Transfer Program
                                             Rhode Island Division of Taxation
                                             One Capitol Hill
                                             Providence, RI 02908-5800
                                             Phone: (401) 574-8484
                                             Fax: (401) 574-8913
RI-EFT-1
06152012

                       State of Rhode Island - Division of Taxation 

                       Payment of Taxes by Electronic Funds Transfer 

                                   Regulation  

                                   EFT 09-01 

                               TABLE OF CONTENTS

 RULE  1.         PURPOSE

 RULE  2.         AUTHORITY

 RULE  3.         APPLICATION

 RULE  4.         SEVERABILITY

 RULE  5.         DEFINITIONS

 RULE  6.         ELECTRONIC FUNDS TRANSFER MANDATE 

RULE  7.         FORMS REQUIREMENT 

 RULE  8.         PENALTY FOR NON-COMPLIANCE 

 RULE  9.         AUTHORITY TO WAIVE THE ELECTRONIC FUNDS TRANSFER MANDATE 

 RULE  10.       EFFECTIVE DATE

RULE  1.          PURPOSE

This regulation implements 44-19-10.3 and 44-30-71 of the Rhode Island General Laws. These 
Chapters require certain taxpayer to make payments by Electronic Funds Transfer with the 
Division of Taxation.  

RULE  2.          AUTHORITY

This regulation is promulgated pursuant to RIGL 44-1 as amended. These rules have been 
prepared in accordance with the requirements of RIGL 44-1 and 44-1-31.1.  

RULE  3.          APPLICATION

The terms and provisions of these rules and regulations shall be liberally construed to permit the 
Division of Taxation to effectuate the purposes of RIGL 44-1-31.1 and other applicable state laws 
and regulations.  

RULE  4.          SEVERABILITY

If any provision of this regulation or the application thereof to any person or circumstances, is 
held invalid by a court of competent jurisdiction, the validity of the remainder of this regulation 
shall not be affected thereby. 

RULE  5.          DEFINITIONS

As used in this rule, the following terms have the following meanings:  

A.  “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.  

D. “Addenda Record” means an ACH record type that carries the supplemental data 
needed to completely identify a taxpayer's tax payment.  

E. “CCD+,” means the standard ACH transaction format that is accompanied by one 
addenda record when submitted to Rhode Island Division of Taxation.  

F.  “Effective Date” or “Effective Entry Date” means the date specified by the originator 
on which it intends a payment to be settled. The “Effective Date” specified by a taxpayer 
or service provider is the date it intends the payment to be deposited into a State of 
Rhode Island bank account.  

Note: NACHA Rules state that for credit entries, “... the effective entry date shall be 
either one or two banking days following the banking day of process as established by 
the Originating ACH Operator (the processing date).”  

G.  “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.  

H. “Look back Period” means the previous calendar year used by the Rhode Island 
Division of Taxation in order to determine whether EFT thresholds, based on reported tax 
liability, are met or exceeded. 

I.  “NACHA” or “North American Clearing House Association” means the national 
regulatory body that establishes the standards, rules and procedures governing the ACH 
Network.  

J. “Pre-notification” or “pre-note” means a zero dollar entry that may be sent through the 
ACH at least seven (7) business days prior to live entries affecting an account at a 
financial institution.  

K. “RTN/ABA number” means the routing transit and American Banking Association 
numbers assigned to financial institutions. This is a nine-digit number with position nine 
computed according to a check-digit formula.  

L. “Settlement Date,” “Deposit Date” or “Payment 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. The dates also include the date a pre-notification 
transaction occurs. Generally, the “settlement date” is the same as the effective entry 
date.

M.  “Standard EFT Payment Methods” means the ACH credit method or the ACH debit 
method of electronic funds transfer.  

N.  “Tax Payment Convention” or “TXP” means the standard format developed by the 
Federation of Tax Administrators and the Banker's EDI Council of NACHA and approved 
by the Banker's EDI Council of NACHA that identifies tax payments in the addenda 
record portion of a CCD+ ACH transaction.  

O.  “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.  

P.  “Zero dollar payment” means a pre-notification-type transaction that is formatted as a 
payment and contains an addenda record.  

RULE  6.            ELECTRONIC FUNDS TRANSFER MANDATE  

A. Generally.  

(1) Effective January 1, 2010, any person with an average monthly sales and use tax 
liability of two hundred dollars ($200) or more per month for the look back period, shall 
remit said payments by electronic funds transfer.  Any person required to withhold and 
remit tax under section 44-30-71 with ten (10) or more employees, over the course of the 
look back period, must make the withholding tax payments by electronic funds transfer.  

(2) However, any person who has a liability of $10,000 or more in connection with the 
filing of any return, report or other document with the Division of Taxation is required to 
remit tax payments for the relevant tax type electronically using either the ACH credit or 
ACH debit method.  Provided, however, payment of personal income taxes by individuals 
shall not be subject to the requirement for Electronic Funds Transfer except that 
employer’s withholding of taxes shall be subject to Electronic Funds Transfer.  

B. Notification by Rhode Island Division of Taxation.  

The Rhode Island Division of Taxation will periodically review the payment histories of 
taxpayers, employing the look back period on a tax-specific basis, in order to determine 
which persons are required to make payments via EFT. When the Division of Taxation 
determines that a person is liable for making payments electronically, the person will be 
notified and provided with the necessary registration forms or in the case of internet filing 
the internet address to establish an EFT account with the Division of Taxation. The 
taxpayer has 30 days after such notification to complete and return registration materials.  

RULE 7. FORMS REQUIREMENT 

Refer to “Electronic Tax Filing Guide”, Publication 1345, found at 
www.tax.ri.gov/documents/elf/handbook.pdf for information on filing tax reports/forms when tax 
payments are remitted via EFT 

RULE  8.           PENALTY FOR NON-COMPLIANCE       

        A. Generally; insufficient funds.  

        Payments made by electronic funds transfer are subject to the interest and 
        penalty provisions if the payment is deemed late.  EFT deposits to a designated 
        State of Rhode Island bank account that are reversed by the State's depository 
        bank due to insufficient funds in the originator's account are subject to the late 
        filing and late payment penalties.   

        B. Failure to file electronically.  

        Chapter 44-19-10.3 and 44-30-71 provides that if any person fails to remit said 
        taxes by electronic funds transfer or other electronic means defined by the tax 
        administrator as required hereunder, the amount of tax required to have been 
        electronically transferred shall be increased by the lesser of five percent (5%) of 
        the amount that was not so transferred or five hundred dollars ($500), whichever 
        is less, unless there was reasonable cause for the failure and such failure was 
        not due to negligence or willful neglect.  

. RULE  9.            AUTHORITY TO WAIVE THE ELECTRONIC FUNDS TRANSFER MANDATE 

 A taxpayer may make a written request to the EFT Section for waiver from mandatory 
 EFT participation for good cause. Good cause determinations will be made on a case-by-
 case basis. The following will generally be considered by the Tax Administrator to 
 constitute good cause:  

        A. The taxpayer's bank does not participate in ACH in any form. The taxpayer 
        must provide a letter from its financial institution.  

        B. The taxpayer's current tax liability and reporting trend shows a decline in the 
        amount of reported tax liability. If projected into the future, the tax liability will not 
        meet or exceed the applicable mandatory threshold amount.  

        C. The taxpayer's tax liability during the look back period no longer meets or 
        exceeds the applicable mandatory threshold amount.  

        D. The taxpayer's tax liability meets or exceeds the applicable mandatory 
        threshold amount only because of uncharacteristically high tax amounts reported 
        in 3 or fewer months of the look back period. However, good cause does not 
        exist under this paragraph in the case of a person reporting withholding tax on a 
        quarterly basis.  

        E. The taxpayer is under the payroll administration of the federal government.  

        F. The taxpayer is required to file three or fewer times per year.  

Waiver requests should be sent to the following address: 

Rhode Island Division of Taxation 
EFT Section 
One Capitol Hill  
Providence, RI 02908 

The waiver request must include a detailed explanation as to why the mandate should not apply.  

RULE  10.  EFFECTIVE DATE: 

This Regulation shall take effect as of January 1, 2010 and shall amend and supercedes 
regulation EFT 00-01 promulgated January 1, 2000.        

DAVID SULLIVAN  
TAX ADMINISTRATOR