Electronic Funds Transfer Payments (ACH) FAQ

Who is required to make electronic payments?

All tax payments of $50,000 or more must be made by electronic funds transfer. (Ordinance #176160, effective September 25, 2004). However, tax payments of less than $50,000 may be paid electronically.

What methods of electronic payments are allowed?

The City of Los Angeles through Wells Fargo receives its electronic payments via the Federal Automated Clearing House (ACH) system. The City accepts both ACH Credit and ACH Debit.

Other tax jurisdictions use a telephone payment system. Does the City offer this electronic payment option?

No. ACH Credit and ACH Debit are the only electronic payment options authorized by the City. These formats include an addenda record (see below) to expedite processing of your payment.

What is required to make these ACH payments?

For ACH Credit, you must first contact your bank to set up ACH payments. Once this has been done, you must complete a PDF iconElectronic Fund Transfer Pre-registration [PDF 2 pages, 156 KB] with the Office of Finance before you can start using this payment option.

For ACH Debit, you do not have to pre-register with the Office of Finance. However, you have to inform your bank that you are going to make a payment to the Office of Finance using this payment option. Some banks do not offer this payment option or they put a limit on the amount of money that can be taken out from your bank account. To renew or pay your bill online please visit our website at Online Taxpayer Services. Payment is simple and easy with no complex registration required. ACH Debit is only available when making payments through our website.

If I choose to pay by ACH Credit, what information must I provide to ensure that my account is properly credited?

When formatting your ACH Credit payment, you must include your Tax Registration Certificate number (Taxpayer Account Number) in the ACH addenda record. Use the following format (example shown here): 000123456-0001-0-201701M-U004 

In this example, 000123456-0001-0 is the account number, 201701M is the tax period and type (the first month of 2017), and the fund/class is U004. Here is another example: 000123456-0001-0-201700A-L049 

In this example, 000123456-0001-0 is the account number, 201700A is the tax period and type (the 2017 annual renewal), and the fund/class is L049.

Your account number, tax period and type, and fund/class all appear on PDF iconyour tax bill or renewal statement.

No other information should be transmitted in the addenda record, and the account number must appear first. If you are paying for multiple accounts, multiple periods, or multiple fund/classes, include only the account with the highest value, followed by the word "MORE" in the record: 000123456-0001-0-201701M-U004 MORE

Please ensure that the ACH Settlement Date is on or after the tax due date but before the delinquent date.

Very important: Please fax your tax forms to (213) 922-9648 the same day that your ACH Credit payment is processed (ACH Settlement Date). If you are paying for multiple accounts and/or locations, please also fax a schedule reconciling the total ACH Credit payment to the various accounts, periods, and fund/classes so that we may properly credit your payment(s) without delay. Use the account format given above for each amount to be reconciled.

What if I cannot make payments using ACH?

If you are unable to use the ACH payment method through your bank, you will need to continue to remit payment by check with your monthly or annual Tax Statement. Include with your first payment a letter stating the reason why you are unable to pay via ACH.

This page doesn't answer all my ACH questions. Whom can I contact for further assistance?

Please be aware that each bank handles ACH payments differently. Many have proprietary web interfaces for their customers. The City cannot provide assistance with the proprietary interface.

If you have difficulties arranging ACH payments through your bank and need to discuss alternatives or if you have any other questions about electronic tax payments to the City, please contact us.