Electronic funds transfer

Since the beginning of fiscal year 1996,
more than 80,000 businesses in Maryland have
been able to pick up a phone and pay withhold-
ing and sales and use taxes with a free electronic
funds transfer offered by the State Comptroller's
Offfice.

Taxpayers authorize a payment transfer
from the taxpayer's bank account to the state's
bank through an Automated Clearing House
(ACH) debit option. A verification code is pro-
vided as proof of payment.

While the electronic funds transfer method
is required by law for tax liabilities of $20,000 or
more, the expanded access introduced by Comp-
troller Goldstein offers several benefits to smaller
businesses.

There's no need to fill out a tax form. There's
no fear of penalties and interest since the pay-
ments arrive on time. The transaction is also safe
and secure since only the taxpayer knows the
password required to initiate a payment - and the
phone call is free.

Most of the $3.5 billion in business tax rev-
enue received in fiscal year 1996 came in from
electronic funds transfers.

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