02 Apr 2013

Use Electronic Payments to submit funds to Courts or IRS

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Trustee Tip:

Use Electronic Payments to submit funds to Courts or IRS

DOJOne Trustee found out the hard way that traditional paper checks were no longer accepted at his court when his unclaimed funds check was returned to him.

The latest Handbook includes exemptions that allow for payments to Courts and the IRS to be submitted electronically:

e) Court fees, such as filing fees for adversary proceedings, may be paid by estate checks processed as ACH transactions or EFTs. They can also be paid electronically using the trustee’s personal or firm credit card.  The trustee may seek reimbursement and be paid in accordance with local rules.

f) Federal tax deposits (including those resulting from wage claims) must be remitted to the IRS using the Treasury’s Electronic Federal Tax Payment System (EFTPS).  Information about this system is available at: https://www.eftps.gov/eftps.

g) Payments to the court for unclaimed dividends and dividends less than $5 may be paid by estate checks processed as ACH transactions or EFTs.

Not only are electronic payments allowed, but many Courts and the IRS will only accept payments electronically—through ACH, EFT, EFTPS, or the pay.gov website. BMS would like to remind all clients to check with your court to find out how they accept payments and to request the necessary forms to set up electronic payments as soon as possible.

For further information regarding these exceptions please visit the The United States Department of Justice website to locate the Handbook for Chapter 7 Panel Trustees.

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