Income Tax Payments - How to Use eFile & Pay

Business Taxes

To log in, enter your unique 8-digit Business eFile Number (BEN) assigned and mailed to you by the Iowa Department of Revenue.

Be sure the radio button for Business Taxes is selected if you are filing for Sales, Withholding, Motor Fuel or LPG Fuel Tax.

Then click on the CONTINUE button.

Individual Income/Corporation Income ePayments

Not Enrolled?

If you have not previously enrolled through the eFile & Pay system to make individual or corporation income tax payments, and would like to make an estimated or final payment, click on the "Not enrolled" link. You will be taken to an Income Tax ePayments Main Menu.

Enrolled?

If you have enrolled through eFile & Pay to make income tax payments, enter the unique 8-digit Business eFile Number (BEN) assigned and mailed to you by the Iowa Department of Revenue.

Select the radio button for Individual Income/Corporation Income ePayments to make an estimated or final payment for individual income tax, or submit an estimated or final payment for corporate estimate tax.

Then click on the CONTINUE button.

The system automatically checks your computer's Internet browser to see if it is compatible with the Iowa eFile & Pay system. In order to use eFile & Pay, you must have Internet Explorer 5.0, 5.5, or 6.0, or Netscape 6.1, 6.2, or 7.0, or Firefox 1.0.

To upgrade your Internet Explorer browser, go to Microsoft.com.

To upgrade your Netscape browser, go to Netscape.com.

To obtain Firefox, go to https://www.mozilla.org/en-US/firefox/products/

Please contact the Iowa Department of Revenue if you have additional questions. 

Enrolled means you have registered through the eFile & Pay system to make individual or corporation income tax payments. Once enrolled, an 8-digit Business eFile Number (BEN) was assigned and mailed to you by the Iowa Department of Revenue. You can use this same Business eFile Number to access the eFile & Pay system to file business taxes (LPG, Sales, or Withholding) or Individual/Corporation Income Tax payments.

ID (SSN/FEIN) and Password: Enter your Social Security Number (SSN) if paying individual income tax, or the Federal Employer Identification Number (FEIN) if you are paying corporation tax. Enter the password you created when you first used the system or the latest one you selected.

Log In: Clicking on Log In will allow you to proceed to the Main Menu.

Exit: This will allow you to exit the eFile & Pay system.

You may try to enter your ID and Password again; however, entering incorrect information three times will lock you out of the system.

You will be given the option of going to "Forgotten Your Password" help questions if you entered the wrong Password. The link will ask for answers to the two hint questions you answered on the "Profile" screen. If you are locked out of the system, contact the Department.

Shown are the two questions you selected and answered on the "Profile" screen. Enter the answer you provided for each question and click on the CONTINUE button.

If you do not remember the answers you provided and get locked out of the system, please contact the Department.

SSN/FEIN: Enter your Social Security Number (SSN) if paying individual income tax, or the Federal Employer Identification Number (FEIN) if you are paying corporation tax.

Create a Password: Enter an 8-character Password that has at least one number. (Example: Sample01) Do not use your Business eFile Number or any portion of your Social Security Number, Federal Employer Identification Number (FEIN), or permit numbers as the Password.

You will use this Password in combination with your ID number whenever you use eFile & Pay in the future.

Confirm Password: Re-enter the Password exactly as you typed it in the prior box.

Select a Password Hint Question 1: Select any question from the drop-down menu.

Answer Password Hint Question 1: Enter the answer to the question you selected above. If you forget your password, this answer will allow you to access the system.

Select a Password Hint Question 2: Select any question from the drop-down menu. You may not use the same question you selected above.

Answer Password Hint Question 2: Enter the answer to the question you selected above. If you forget your password, this answer will allow you to access the system.

Contact Name: Enter your first and last name or the first and last name of another person in your company who will be a contact should there be questions about eFile & Pay transactions. Do not use commas between the names. Example: Jack Jones

Contact E-Mail Address: This is an optional field. The address entered may receive e-mail confirmations of all filing and payment transactions performed on this system.

Contact Telephone Number: Enter the telephone number of the Contact Name listed above.

The telephone number must include the area code and have no punctuation. 
(Example: 2225551212)

Exit: Clicking the EXIT button will take you out of the system without saving any entries made on this screen.

Continue: Clicking the CONTINUE button will save all entries made on this screen and proceed to the next step.

This allows you to update your personal Profile. You can change the Password as well as other information initially entered on the profile screen.

Edit any of the following fields:

• Create Web Password (Must be 8 alpha-numeric. Example: Sample01) Do not use your Business eFile Number or any portion of your Social Security Number, Federal Identification Number, or permit numbers as the Password.
• Confirm Web Password
• Select a Password Hint Question 1
• Answer Password Hint Question 1
• Select a Password Hint Question 2
• Answer Password Hint Question 2
• Contact Name
• Contact E-Mail Address
• Contact Telephone Number

Exit: Clicking the EXIT button will take you out of the system WITHOUT saving any entries made on Update screen.

Continue: Clicking CONTINUE will save entries made on the Update screen.

If you make an error entering your ID/Password three times, you will receive a message similar to the following: "You attempted to log into the Iowa eFile & Pay system unsuccessfully." For security reasons, the system has locked out your access.

You must contact the Iowa Department of Revenue to be reset.

WHO needs to file and pay individual estimated tax?

Every individual or married couple filing a joint Iowa return that expects to have a tax liability of $200 or more from incomes not subject to withholding. A penalty for underpayment of estimated tax may apply if sufficient estimated payments are not submitted.

Estimated payments are credited to only one individual. Each individual required to make estimated payments must file an estimated payment under his/her name and Social Security Number. Married couples filing a joint Iowa return may make estimates under either spouse's name and Social Security Number.

HOW to compute estimated taxes

Compute estimated tax by using one of the following methods:

• Pay 5% of the anticipated Iowa gross income, or
• Pay 100% of the prior year's Iowa tax liability (from IA 1040, line 55), less applicable credits, 110% if prior year's federal adjusted gross income plus any bonus depreciation adjustment from line 14 of the IA 1040 exceeded $150,000, or
• Complete the traditional worksheet found in the Iowa Tax Forms

WHEN does it need to be paid?

The four estimated payments for calendar year filers are due on April 30, June 30, September 30, and January 31 of the following year. For fiscal year filers, the dates for paying the estimated tax are the last day of the fourth, sixth, and ninth months of the fiscal year, and the last day of the first month of the next fiscal year.

Farmers/Fishers

If 2/3 or more of estimated gross income is from farming or commercial fishing, two additional options are available, other than making the four estimated payments. (See federal publication 505 for more information.)

Option 1 - Pay the estimated tax in one payment on or before January 15 of the next year, and file the Iowa income tax return by April 30, OR

Option 2 - File the Iowa income tax return and pay the tax due in full on or before March 1 of the next year.

Overpayment from prior year

If you had an overpayment on your prior year Iowa income tax return and chose to apply it as a credit to your estimated tax, the amount is automatically posted on the Department's records as an estimate credit for the current year. However, this amount will not appear on the payment history which can be viewed on the eFile & Pay system. That payment history only shows payments made through eFile & Pay.

Amending estimated tax

If your income changes during the year, adjust the estimated tax for the remaining quarters accordingly. An "amended" estimate is not allowed; however, you may make more than one payment for a particular estimated period.

Nonresidents

Iowa law provides that nonresidents whose income from Iowa sources is other than wages have the option of having Iowa income tax withheld or paying estimated income tax. If paying estimated tax is preferred, a Nonresident Request For Release From Withholding must be obtained prior to receipt of income.

WHO needs to file and pay corporation estimated tax?

Every corporation with $1,000 or more in tax due after credits must file and pay estimated tax. A penalty for underpayment of estimated tax may apply if sufficient estimated payments are not submitted.

Certain corporate estimate filers are required to remit the tax due electronically. Installments shall be made electronically when total corporate tax liability for the tax year prior to the tax year just completed exceeds $80,000. The electronic payment options available are eFile & Pay, pay by credit card, or ACH Credit through your financial institution. eFile & Pay or credit card payment are available on our Website. To use ACH Credit, you must first contact your bank for further information about their ACH Credit payment services and cost. Then, open, review, and follow our required ACH Credit Payment Instructions (pdf). You may share these instructions with your bank. The only paper document to be filed by corporations set up to pay electronically will be the annual corporate income tax return.

HOW do I compute corporation estimated tax?

Complete the Corporation Estimated Income Worksheet using the column titled Original Computation found on the corporation tax forms page.

• If the tax after credits on line 21 is less than $1,000 you do not have to file and pay estimated tax.
• Enter the amount on line 24 in column b of the Estimated Tax Payment Schedule. Enter any applicable overpayment in column c. Subtract column c from the amount in column b and enter in column d. Please use whole dollars.

WHEN does it need to be paid?

The four estimated payments for calendar year filers are due on April 30, June 30, September 30, and December 31. For fiscal year filers, the dates for paying the estimated tax are the last day of the fourth, sixth, ninth and twelfth months of the fiscal year.

Overpayment from prior year

If you had an overpayment on your prior-year Iowa income tax return and chose to apply it as a credit to your estimated tax, the amount is automatically posted on the Department's records as an estimated credit for the current year. However, this amount will not appear on the payment history which can be viewed on the eFile & Pay system. That payment history only shows payments made through eFile & Pay.

Amending estimate tax

If your income changes during the year, adjust the estimated tax for the remaining quarters accordingly. Use the Amended column of the Corporation Estimated Income Worksheet to calculate the revised estimated amount for the remainder of the year. An "amended" estimate is not allowed; however, you may make more than one payment for a particular estimated period.

Due Dates

For calendar year filers, Individual and Corporation Income Tax returns are due on April 30 of the following year. Returns of fiscal year filers are due at the end of the fourth month following the end of the fiscal year.

In order to be considered a timely payment, the tax shown due on the return must also be paid by these dates.

Penalty

Failure to Timely File a Return: A penalty of 10% will be added to the tax due for failure to timely file a return if the return is filed after the original due date of the return and if at least 90% of the correct amount of tax is not paid by the original due date of the return.

Failure to Timely Pay the Tax Due or Penalty for Audit Deficiency: A penalty of 5% will be added to the tax due if at least 90% of the correct amount of tax is not paid by the original due date of the return.

When the failure to file penalty and the failure to pay penalty are both applicable, only the failure to file penalty will apply. These penalties are in addition to any Penalty for Underpayment of Estimated Tax.

Interest

Interest accrues on the unpaid tax at a rate prescribed by law from the original due date of the return until payment is received. Any portion of a month is considered a full month in calculating interest due on unpaid tax.

Automatic Extension of Time to File

All taxpayers who have paid 90% or more of their correct tax on or before the original due date of their return automatically have an additional six months in which to file their return and pay any additional tax due with no penalty.

Taxpayers who have not paid 90% or more of their correct tax on or before the original due date of their corporation income tax return are not allowed the six month additional period of time to file and would owe both penalty and interest on the additional tax due after the original due date of their return.

NOTE: Interest will accrue on any tax due after the original due date of the return.

Payment Options

Make a Payment: This option will allow authorized users to make an income tax payment.

Cancel a Payment: This option will allow authorized users to cancel an ePay transaction that was previously scheduled. Warehoused payments must be canceled by 4:00 p.m. Central Time at least one business day before the payment date. To cancel a payment on the same day it was initiated, the cancellation must be completed that same day by 3:00 p.m. Central Time.

Update Enrollment Info: This option will allow you to update your personal profile.

File for your Clients : For selected entities, this option will allow you to make payments for clients.

Cancel a Payment for Your Client: For selected entities, this option allows you to cancel a previously scheduled ePay transaction.

View "e" History

View Payments "e" History: This option will allow you to see a history of all payments made electronically using the ePay option provided by this system. NOTE: Only the payments made after you enrolled and received your BEN will be shown.

View Canceled Payments "e" History: This option will allow you to see a history of canceled ePay transactions. NOTE: Only the payments canceled after you enrolled and received your BEN will be shown.

Exit

Clicking the EXIT button will take you out of the system.

ePay Individual Income Tax (IA1040/ IA1040ES): This option will take non-enrolled users to the Individual Income Taxpayer Information screen.

The information requested on the Individual Income Taxpayer Information screen is as follows:

• Taxpayer ID (SSN): Enter your Social Security Number.
• Last Name, First Name: Enter your last name first, followed by a comma, followed by your first name.
• Mailing Address 1
• Mailing Address 2: This could be used to add additional address information, such as a P.O. Box.
• City
• Select State using drop-down box.
• Zip Code
• Telephone Number, including area code
• Make A Payment for: Select the tax period from the drop-down box.
• Optional selection: I wish to enroll. Please mail me a Business eFile Number (BEN) so that I may login to Individual Income Tax ePayments next time without having to repeat the information provided above. (A check mark in this box indicates to the Department of Revenue that you would like to use the eFile & Pay system again in the future, but do not want to enter all the required information each time. If you check this box, the Department of Revenue will mail you a Business eFile Number in about 4 to 6 weeks.)

ePay Corporation Income Tax (IA1120/ IA1120ES): This option will take non-enrolled users to the Select Fiscal Month screen. After selecting the month that the fiscal year begins and pressing CONTINUE, the user will be presented with the Corporation Income Taxpayer Information screen.

The information requested on the Corporation Income Taxpayer Information screen is as follows:

• Taxpayer ID (FEIN): enter your Federal Employer Identification Number
• Corporation Name
• Mailing Address 1
• Mailing Address 2: this could be used to add additional address information, such as a P.O. Box
• City
• Select State using drop-down box
• Zip Code
• Telephone Number, including area code
• Make A Payment for: Select the tax period from the drop-down box
• Optional selection: I wish to enroll. Please mail me a Business eFile Number (BEN) so that I may login to Corporation Income Tax ePayment next time without having to repeat the information provided above. (A check mark in this box indicates to the Department of Revenue that you would like to use the eFile & Pay system again in the future, but do not want to enter all the required information each time. If you check this box, the Department of Revenue will mail you a Business eFile Number in about 4 to 6 weeks.)

Cancel an Income Tax ePayment: This option will allow you to cancel an ePay transaction that was previously scheduled. Warehoused payments must be canceled by 4:00 PM Central Time at least one business day before the payment date. To cancel a payment on the same day it was initiated, the cancellation must be completed that same day by 3:00 PM Central Time.

Client eFile Number: Enter the 8-digit Business eFile Number for your client.

Tax Type: Select either Individual or Corporation Income Tax from the drop-down box.

SSN/FEIN: Enter the Social Security Number or Federal Employer Identification Number for your client.

ePay is an electronic payment option available through the eFile & Pay system. ePay is also known as direct debit, ACH debit, or direct payment.

Before making your payment through ePay, check with your bank to see if it requires the Iowa Department of Revenue's ePay Bank Filter (Company-ID). It is 1421590141. (If you have used the Department's EFT system, please note that the new ePay system has a different filter.) 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.

To use ePay, you enter your bank routing number and your bank account number in the eFile & Pay system. If your bank account number has fewer than three digits, please insert zeroes in front of the number.

The payment date is the date the person made the payment and the date the Department recognized the payment was made. The settlement date is the date the payment was extracted from the financial institution.

ePay is free. The Department pays any fees for this service and no special registration is required. You control the payment date and the amount paid, and you determine if the payment should be taken from checking or savings. The electronic check allows you the convenience of paying any balance due without writing and mailing a check. Based on the information you provide, the Department will debit your account for the amount you specify. Your banking information will be redisplayed each time you choose to ePay your taxes. If needed, you can change the banking information each time you initiate an ePay transaction.

Select the Payment Being Made: Choose the payment you wish to make from the drop-down box.

Continue: Clicking CONTINUE will take you to the ePay screen.

Based on the information you provide on the electronic check, the Department will debit your account for the amount you specify.

If you are enrolled, your banking information will be redisplayed each time you ePay your taxes. But if needed, you can change the banking information each time you initiate an ePay transaction.

Check with your bank to see if they require Iowa Department of Revenue's Bank Filter (Company ID). It is 1421590141. When you provide your bank this Bank Filter number, you authorize the 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.

Checking or Savings: Choose the type of account you wish to use to make this payment.

Enter Payment Date: Enter the date the payment should be made. For example, a payment on April 30, 2007, would be entered 04/30/2007.

Payments will be considered to have been made on this day if the payment information was entered before 4:00 p.m. Central Time. Payments entered after 4:00 p.m. will be considered made on the next business day.

NOTE :If the due date falls on a Saturday, Sunday, or holiday as defined in Iowa code 421.9A, then the due date is the following day that is not a Saturday, Sunday, or holiday. Please be aware your bank account may not show the deduction for a few days thereafter.

Amount: Fill in the amount you wish to pay. The amount must be greater than $0.99. Enter dollars and cents.

Bank Routing #: Enter the 9-digit routing number for your bank.

Bank Account #: Enter your bank account number. The number may be from 3 to 17 digits in length.

Use the "SAMPLE" button on the ePay information page to see an example of where to find routing and account numbers on a paper check.

This page allows you an opportunity to review your payment information before submitting the payment for processing.

Click on the "EDIT" button to go back to the ePay information page to make changes.

Click on the "SUBMIT" button to authorize the payment for processing and receive a confirmation number.

The page will confirm that the payment has been submitted to the Iowa Department of Revenue for processing.

Confirmation Information: 
This portion of the page confirms the submission of your transaction. A confirmation number, date and time, tax type, date payment is scheduled, SSN/FEIN, account type (either checking or savings), bank routing number and account number, as well as payment amount are presented. Retain this information for your records.

Main Menu: Press this button to return to the Main Menu.

Print: Press this button to print a copy of this page for your records.

Email: Press this button to have a copy of this page e-mailed to you. E-mails will be sent to the contact e-mail address, if available.

Exit: Press this button to leave the eFile & Pay system.

Payments can be canceled if they have not yet been sent to the bank for processing. The payment confirmation number and original confirmation date were provided on the confirmation page when the payment was submitted. Both the payment confirmation number and the original confirmation date are required to ensure the correct payment is canceled.

Payment Confirmation Number: Enter the original 10-digit confirmation number provided at the time the payment was submitted.

Original Confirmation Date: Enter the date the payment was entered on the eFile & Pay system.

This page allows you an opportunity to review your payment information before submitting it for cancellation.

Back: Pressing this button returns you to the Cancel ePay page to make corrections.

Cancel Payment: Pressing this button will proceed with the cancellation of the payment, provided it has not yet been submitted to your bank.

The page will confirm the cancellation of your payment.

ePay Cancellation Confirmation Information: This confirms the submission of your cancellation. Retain this information for your records.

Main Menu: Press this button to return to the Main Menu.

Print: Press this button to print a copy of this page for your records.

Email: Press this button to have a copy of this page e-mailed to you. E-mails will be sent to the contact e-mail address, if available.

Exit: Press this button to leave the eFile & Pay system.