Why did I get an ACH Charge from TaxSlayer?

If you noticed an ACH charge from TaxSlayer on your bank account, it's usually related to filing fees from a tax return submitted through our software. Here's what ACH charges are, why they happen, and what to do if you don't recognize one.

What Is an ACH Charge?

An ACH (Automated Clearing House) charge is an electronic transfer of money between bank accounts. The ACH network is a secure U.S. payment system that banks and businesses use to move funds without paper checks or credit cards.

When an ACH charge is processed:

  1. A business or individual requests a payment.
  2. The payment request is sent through the ACH network.
  3. Funds are withdrawn from or deposited into a bank account.
  4. The transaction typically settles within 1 to 3 business days.
Unlike credit card transactions, ACH transfers are processed in batches throughout the day rather than instantly.
 

Why Did TaxSlayer Charge My Bank Account Through ACH?

If you selected File & Go when filing your tax return, you chose to have your filing fees paid from your federal tax refund instead of paying upfront.
 
When you use File & Go, a temporary bank account is created in your name. The IRS sends your refund to this temporary account first. Your filing fees are deducted from the refund, and the remaining funds are then deposited into the bank account you provided.
 
For File & Go to work, the IRS must send your refund in a timely manner and the refund must be large enough to cover the filing fees.
 
TaxSlayer  may debit the bank account you authorized if:
  • The IRS does not send your refund within the timeframe required by the File & Go agreement. 
  • Your refund is reduced and there are not enough funds to cover the filing fees. 
  • Your refund is offset to pay certain federal or state debts.
  • The IRS does not issue your refund.
If any of these situations occur, there may not be enough funds available through the refund to pay your filing fees. In that case, TaxSlayer  may collect the unpaid fees from the bank account you authorized when you selected File & Go.
 
By choosing File & Go, you agreed to this authorization as part of the Refund Agreement.

What Is File & Go?

File & Go is a payment option that lets eligible taxpayers pay their filing fees using their tax refund instead of paying upfront at the time they file.

While this option can make filing more convenient, it depends on the refund being released and available to cover the fees owed.

Are ACH Charges Safe?

Yes. ACH payments are widely used by banks, employers, government agencies, and businesses across the United States.

Financial institutions use multiple security measures and strict regulations to protect ACH transactions. Even so, it's always a good idea to review your bank account regularly and verify that all transactions are authorized.

I Don't Recognize the ACH Charge From TaxSlayer. What Should I Do?

If you did not file a tax return with TaxSlayer, and no one was authorized to file a return on your behalf, take the following steps:
  1. Contact your bank immediately and dispute the charge.
  2. Contact the IRS to verify that no tax return was fraudulently filed using your information.
  3. File a police report. If needed, law enforcement may request information related to the transaction through the appropriate legal process.
Acting quickly can help protect your financial information and address any potential identity theft concerns.

Key Takeaways

  • ACH charges are electronic bank-to-bank transfers.
  • TaxSlayer ACH charges are often related to unpaid filing fees associated with File & Go.
  • ACH transactions generally take 1 to 3 business days to process.
  • Review your bank account regularly to ensure all transactions are accurate and authorized.
  • If you do not recognize a TaxSlayer ACH charge, contact your bank and investigate the transaction right away.
Understanding why an ACH charge appears on your account can help you determine whether it's an expected payment or a transaction that needs further review. If you used File & Go, the charge may simply be the collection of filing fees you previously authorized during the tax filing process.

Looking for more tax information and tips? SHOW ME MORE
Was this article helpful?
0 out of 1 found this helpful
While TaxSlayer strives to make the information and links contained in our KB articles as timely and accurate as possible, we make no promise or guarantee about the timeliness, accuracy, or completeness of the contents on these pages. The information contained in the Knowledgebase (KB) is for general information only and is not intended to be tax, financial, or legal advice. The user is encouraged to review additional state and federal resources and publications as needed.

Switching to TaxSlayer is easy

Simply upload your return from whatever service you used last year
START FOR FREE

Related articles