Sovos will send you an email with the subject line Debit Notification 6-7 days before the tax returns are due. The email will include:
- An ACH debit request
- The date of the ACH debit request
- The tax amount due in each taxing jurisdiction. The total amount will match the amount you approved in the Tax Filed Report.
ACH debit pulls money from one account and moves it to another (for example, from a personal account to a business account). The payer has already given permission for the payment, which happens automatically.
At this point, the tax amounts can’t be changed. If you want to modify the amounts remitted, you'll need to amend the return.
5 days before the tax return is due, Sovos withdraws the tax amounts stated in the debit notification from your account through ACH debit. Sovos is able to do this because you gave your permission by signing the Client Account Agreement. This agreement includes all the necessary banking information as well. Once the amount appears in Sovos’ bank account, Sovos sends it to the tax authorities.
If the funds aren’t available in your bank account at the time of the ACH debit request, Sovos will contact you so that you can wire the necessary amount. The wire instructions are included in the Client Account Agreement.