The State of Iowa offers these options to make electronic payments:
- Direct Debit through the tax software used to file income tax returns electronically
- ePay (free direct debit) through eFile & Pay, the Department's system for electronically filing and paying Iowa taxes
- ACH Credit through your financial institution
- Credit / Debit Card through Official Payments Corporation (The credit / debit card option is not available for corporation income or motor fuel taxes, including LPG.)
- Payment made with the income tax return through the software being used to file electronically
- Enter your bank routing number and your bank account number – the payment comes directly out of the bank account provided – no need to send a check!
- Options and advantages (check the software vendor for the features they provide):
- you control the date the amount is taken from your account
- decide to pay the entire balance due or just a portion
- choose if the payment should be taken from checking or savings
- To cancel a payment made with the return, the taxpayer can e-mail Payment Processing at email@example.com. Include taxpayer name, payment amount, scheduled pay date and taxpayer phone number
- If you need to change the timing of a payment or to update the bank account information, cancel the original payment and resubmit a payment in one of the following ways:
- Through your tax software
- ePay through eFile & Pay from our Web site
- Credit / Debit Card
- Mail a Check or Money Order
ePay (free direct debit)
File your return and pay electronically through eFile & Pay. Access the system and your account history at any time. ePay is a secure system. ePay is free to you. The cost of the transaction is charged to the State. You will be given a confirmation number to keep with your records.
When you ePay, you enter your bank routing number and your bank account number. You control the date the amount is taken from your account and the amount paid, and you determine if the payment should be taken from checking or savings. For future payments, the system remembers your bank information. If it changes, you simply enter the new information.
Before making your payment through ePay, check with your bank to see if they require Iowa Department of Revenue's ePay Bank Filter (Company-ID). It is 1421590141. When you provide your bank this Bank Filter number, you authorize Iowa Department of Revenue to debit your account. Your bank may reject debits to your account if they are not provided the Department's Bank Filter in advance. Need to cancel your payment? You may do so up to 1 day before the due date.
- Contact your bank to learn the process and cost of ACH services. The cost of the transaction is charged to you.
- Register for ACH Credit with the Iowa Department of Revenue. You must complete the Iowa EFT Authorization Form (92-116) (pdf). Once this form is processed, more information on how to make EFT payments will be sent to you.
Credit / Debit Card
See our credit / debit card page for more information.
Electronic Payment Requirements and Information
Who must make electronic payments?
- Retailers who remit more than $5,000 a month in sales tax
- Employers who remit over $10,000 a month in withholding tax
- Corporations who remit more than $20,000 a quarter in estimated tax
- Motor Fuel suppliers, restrictive suppliers, importers, and blenders
- LPG Fuel Tax dealers and users
- Businesses that have Direct Pay Permits
Who may make electronic payments?
Any permit holder may voluntarily make electronic tax payments.
What if you don't know the exact amount of sales tax to remit?
Monthly filers: Estimate payments using 1/3 of the tax that was paid in the previous quarter.
Semi-monthly filers: Estimate payments using 1/6 of the tax that was paid in the previous quarter or 1/6 of the tax collected and paid during the same quarter of the previous year.
The method of reporting selected by the retailer must remain consistent for at least four quarters.
May FedWire be used to electronically pay taxes?
No. This is NOT a valid payment option. You must contact us at 1-800-338-4692 before initiating any FedWire payment.
Consistent use of FedWire may result in penalty being charged.
eFile & Pay online
eFile & Pay telephone number: 1-800-514-8296