Content Overview
The Texas 74 221 form is essential for taxpayers seeking to receive their tax refunds through direct deposit from the State of Texas. This form streamlines the process by allowing individuals and businesses to provide their banking information securely. Taxpayers must fill out their 11-digit Texas taxpayer number, mailing address, and business name, ensuring all details are accurate. The form includes various sections that specify the type of tax refund being requested, such as franchise, hotel, or sales tax, among others. Additionally, it allows for new setups, changes to existing accounts, or cancellations of direct deposit arrangements. It is crucial to indicate whether the payments will be forwarded to a financial institution outside the United States, as this requires additional verification. Lastly, taxpayers must authorize the Texas Comptroller of Public Accounts to electronically deposit payments, acknowledging that any erroneous deposits will be reversed. Completing this form accurately is vital to ensure timely and correct tax refund processing.
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74-221
(Rev.9-15/12)
For Comptroller’s use only
Enter your 11-digit Texas taxpayer number Business phone (Area code and number)
ext.
Business name
Mailing address City State ZIP code
Taxpayer Information
SECTION 1
Tax Refund Direct Deposit Authorization
This form may be used by taxpayers receiving
tax refund payments from the State of Texas.
Please return your completed form via mail or FAX to:
Texas Comptroller of Public Accounts
Fiscal Management – Direct Deposit Program
P.O. Box 13528
Austin, TX 78711-3528
Help line: 512-936-8138
FAX: 512-475-5424
SECTION 8
Form Return Information
SECTION 2
Tax Type (Required)
Cigarette/Tobacco (T88)
Franchise (T13)
Insurance Premium (T71)
Motor Vehicle Rental (T15)
Seller Finance (T70)
Crude Oil (T36)
Hotel (T75)
CNG / LNG (T90)
Motor Vehicle Sales (T00)
Other:
Diesel/Motor Fuel Claim (T00)
IFTA (T56)
Mixed Beverage Sales (T63)
Natural Gas (T37)
Other:
Diesel/
Insura
Mixed
Sales
Motor
nce Mai
Bevera
(T26)
Fuel Tax (T90)
ntenance (T72)
ge Gross Receipts (T73)
Place an X beside the appropriate tax type(s).
(Mandatory)
SECTION 6
........................................................... YES NO
Please note: Your direct deposit will not be set up if box is not checked.
New setup
Change account number
C
C
hange ac
ancellatio
Transaction Type
SECTION 3
count type
n
Authorization for Setup, Changes or Cancellation (Required)
SECTION 7
Authorized signature Printed name Date
I understand that the Texas Comptroller of Public Accounts will reverse any payments made to my account in error.
I further understand that the Texas Comptroller of Public Accounts will comply at all times with the National Automated Clearing House Association's
rules.
Financial institution name City State
Routing transit number (9 digits) Customer account number Type of account
Checking Savings
Financial representative name (optional) Title (optional)
Financial representative signature (optional) Phone number (optional) Date (optional)
New Account Information (Setups and Changes)
SECTION 4
ext.
SEC 5
Routing transit number (9 digits) Customer account number Type of account
Checking Savings
Existing Account Information (Changes Only)
*7422100W091512*
*7422100W091512*
* 7 4 2 2 1 0 0 W 0 9 1 5 1 2 *
Instructions for Tax Refund Direct Deposit Authorization
You have certain rights
Section 1: Taxpayer Information
Enter Texas taxpayer number, business phone, business/payee name and enter payee contact information.
Section 2: Tax Type
Place an "X" in the appropriate box(s) to indicate type of tax refund.
Section 3: Transaction Type
Select the appropriate type of direct deposit transaction.
Section 4: New Account Information (Needed for setups and changes)
Completion by financial institution is recommended.
Important: Your direct deposit account information may be different from what is printed on your checks.
It is recommended that you contact your financial institution to confirm your direct deposit account
information.
Prenote Test:
A prenote test will be sent to your financial institution for the account information provided. The prenote
test is for a period of six banking days, and it is to verify your account information. If no further action is
required by your financial institution, your direct deposit information will become effective when the six
banking day prenote time frame has expired.
Section 5: Existing Account Information (Needed for changes to existing account information)
When requesting a change to your existing direct deposit account information, you must complete Section
5 with the existing account information for verification purposes. This measure will help the paying state
agency verify accuracy of the requested change.
Any change to banking information begins a prenote test period. See explanation in Section 4, above.
Check "YES" or "NO" to indicate if direct deposit payments to the account information designated in
If "YES," also complete the ACH (Direct Deposit) Payment Destination Confirmation (Form 74-227).
Section 7: Authorization for Setup, Changes or Cancellation
Must be completed in its entirety, and no alterations to the authorization language will be accepted.
Form 74-221 (Back)(Rev.9-15/12)
Form Specifications
| Fact Name | Details |
|---|---|
| Form Purpose | This form is used by taxpayers to authorize direct deposit for tax refund payments from the State of Texas. |
| Governing Law | The form is governed by the Texas Government Code, specifically Chapters 552 and 559. |
| Taxpayer Information | Taxpayers must provide their 11-digit Texas taxpayer number and contact information. |
| Transaction Types | Various transaction types can be selected, including new setups, changes to accounts, or cancellations. |
| International Payments | Taxpayers must indicate if payments will be sent to a financial institution outside the U.S. by checking "YES" or "NO." |
| Authorization Requirement | Taxpayers must sign and date the form to authorize the setup, changes, or cancellation of direct deposits. |
Texas 74 221: Usage Guidelines
Filling out the Texas 74-221 form is a straightforward process. Once you have completed the form, you will need to submit it to the Texas Comptroller of Public Accounts for processing. Make sure all the information is accurate to avoid any delays in your tax refund direct deposit.
- Begin with Section 1. Enter your 11-digit Texas taxpayer number, your business phone number, and the business name. Fill in the mailing address, city, state, and ZIP code.
- Move to Section 2. Place an "X" next to the appropriate tax type(s) that apply to you.
- In Section 3, select the type of transaction you are requesting. This could be a new setup, a change in financial institution, or a cancellation.
- Proceed to Section 4 for new account information. Fill in the financial institution name, routing transit number, and customer account number. Indicate the type of account (checking or savings).
- If you are making changes to an existing account, complete Section 5 with the existing account information.
- In Section 6, indicate whether the payments will be forwarded to a financial institution outside the United States by checking "YES" or "NO."
- Complete Section 7 by signing and printing your name. Include the date.
- Finally, return the completed form via mail or fax to the Texas Comptroller of Public Accounts at the address or fax number provided in Section 8.
Your Questions, Answered
What is the Texas 74 221 form used for?
The Texas 74 221 form is used by taxpayers in Texas to authorize direct deposit for their tax refund payments. This means that instead of receiving a paper check, taxpayers can have their refunds deposited directly into their bank accounts. This process is often quicker and more convenient.
How do I fill out the Texas 74 221 form?
To fill out the form, you need to provide your Texas taxpayer number, mailing address, and contact information. You will also need to indicate the type of tax refund you are receiving by marking the appropriate boxes. If you are setting up a new account or changing existing information, complete the relevant sections about your financial institution and account details.
What information do I need to provide about my financial institution?
You will need to provide the name of your financial institution, the routing transit number (which is a 9-digit number), and your customer account number. You should also specify whether the account is a checking or savings account. It is advisable to confirm this information with your bank to avoid any errors.
What is a prenote test, and why is it important?
A prenote test is a verification process that the Texas Comptroller's office uses to ensure that your bank account information is accurate. This test lasts for six banking days. If no issues arise during this period, your direct deposit will become effective. This step is crucial to prevent errors in your direct deposit setup.
Can I change my direct deposit information after I have submitted the form?
Yes, you can change your direct deposit information. To do this, you must complete the appropriate sections of the Texas 74 221 form with your existing account information for verification. Any changes will also require a prenote test, similar to the initial setup.
What should I do if I want to cancel my direct deposit authorization?
If you wish to cancel your direct deposit authorization, you can do so by filling out the Texas 74 221 form. Make sure to complete the sections related to cancellation. This will ensure that future payments are not deposited into your account electronically.
Where do I send the completed Texas 74 221 form?
You should send your completed form to the Texas Comptroller of Public Accounts. You can mail it to the address provided on the form or send it via fax. The mailing address is P.O. Box 13528, Austin, TX 78711-3528, and the fax number is 512-475-5424.
Common mistakes
-
Incorrect Taxpayer Information: Failing to enter the correct 11-digit Texas taxpayer number can lead to significant delays. This number is essential for identifying the taxpayer and processing the refund accurately.
-
Missing Tax Type Selection: Not marking an "X" next to the appropriate tax type(s) can result in the form being returned. It is crucial to specify the type of tax refund being requested to ensure proper handling.
-
Inaccurate Financial Institution Details: Providing incorrect routing numbers or account numbers may prevent the direct deposit from being processed. It is advisable to verify this information with the financial institution before submission.
-
Omitting Required Authorizations: Failing to complete the authorization section can result in the form being deemed incomplete. This section must be filled out in its entirety to authorize the Texas Comptroller to process the direct deposit.
Documents used along the form
The Texas 74-221 form is used for tax refund direct deposit authorization. Along with this form, several other documents may be necessary for various tax-related processes. Below is a list of documents that are often used in conjunction with the 74-221 form.
- Form 74-227: ACH Payment Destination Confirmation - This form is required if direct deposit payments are to be forwarded to a financial institution outside the United States. It confirms the destination of the payments.
- Form 05-102: Texas Application for Franchise Tax Account - This document is used to apply for a franchise tax account with the Texas Comptroller. It collects essential information about the business.
- Form 05-165: Texas Sales and Use Tax Permit Application - Businesses use this form to apply for a sales and use tax permit in Texas, which is necessary for collecting sales tax.
- Form 74-202: Texas Taxpayer Identification Number Application - This form is utilized to apply for a taxpayer identification number, which is essential for various tax filings.
- Form 74-200: Texas Tax Refund Application - Taxpayers use this form to apply for a tax refund from the State of Texas. It outlines the reasons for the refund request.
- Form 74-211: Direct Deposit Authorization for Federal Payments - This form is similar to the 74-221 but is specifically for federal payments. It allows for the electronic deposit of federal funds into a bank account.
- Form 74-220: Direct Deposit Authorization for State Payments - This document is used for authorizing direct deposits of state payments, similar to the 74-221 form but may have different requirements.
- Form 74-203: Texas Tax Exemption Certificate - This form is necessary for businesses that wish to claim tax-exempt status for certain purchases, providing proof of exemption.
- Form 74-204: Texas Sales Tax Resale Certificate - This certificate allows businesses to purchase items for resale without paying sales tax, as long as the items are intended for resale.
These documents serve various purposes related to tax compliance and financial transactions in Texas. It is important to ensure that all necessary forms are completed accurately to avoid any delays or issues with tax refunds or other financial matters.
Similar forms
The Texas 74-221 form, which is used for tax refund direct deposit authorization, shares similarities with several other financial and tax-related documents. Below is a list of six documents that are comparable to the Texas 74-221 form, along with an explanation of how they are similar.
- IRS Form 8888: This form allows taxpayers to request that their federal tax refund be deposited into one or more accounts. Like the Texas 74-221, it requires taxpayer information and account details for direct deposit.
- Texas Form 05-102: This form is used for claiming a refund of Texas sales and use tax. Both forms require the taxpayer's identification and information about the financial institution for processing refunds.
- Direct Deposit Enrollment Form: Many banks offer this form to set up direct deposit for various payments, including payroll. Similar to the Texas 74-221, it collects account information and authorizes the bank to deposit funds directly into the account.
- ACH Authorization Form: This form is used to authorize electronic funds transfers for various payments. Like the Texas 74-221, it requires information about the account and the authorization of the account holder.
- State Unemployment Insurance Direct Deposit Form: This document allows individuals to receive unemployment benefits via direct deposit. It shares the same purpose of facilitating electronic payments and requires similar information about the financial institution.
- W-2 Direct Deposit Option: Employers may offer a direct deposit option for employee W-2 forms. This option also requires bank details and authorization, akin to the requirements outlined in the Texas 74-221 form.
Dos and Don'ts
When filling out the Texas 74-221 form, follow these guidelines to ensure accuracy and compliance.
- Do enter your 11-digit Texas taxpayer number accurately.
- Do provide a complete mailing address, including city, state, and ZIP code.
- Do select the correct tax type by placing an "X" in the appropriate box.
- Do ensure that your financial institution's routing number is correct.
- Do confirm your account information with your financial institution before submission.
- Don't leave any required fields blank; all necessary information must be filled out.
- Don't alter the authorization language; it must remain as provided.
- Don't forget to check the box for international payments if applicable.
- Don't submit the form without reviewing it for errors or omissions.
Misconceptions
Misconceptions about the Texas 74-221 form can lead to confusion for taxpayers. Here are five common misunderstandings:
- Only businesses can use the form. Many believe that only businesses are eligible to submit the Texas 74-221 form. In reality, both individual taxpayers and businesses can use this form to authorize direct deposit for tax refunds.
- The form is only for new direct deposit setups. Some people think that the form is exclusively for setting up new direct deposits. However, it can also be used for changing existing account information or canceling a direct deposit authorization.
- All banks accept the direct deposit immediately. There is a misconception that once the form is submitted, the direct deposit will start right away. In fact, a prenote test period of six banking days is required to verify the account information before the direct deposit becomes effective.
- International payments cannot be processed. A common belief is that the Texas 74-221 form does not accommodate international payments. This is not true. If payments are to be forwarded to a financial institution outside the United States, additional steps must be taken by completing Form 74-227.
- Signatures are optional on the form. Some individuals may think that providing a signature is not necessary. In reality, the authorization section must be completed in its entirety, and signatures are required for the form to be valid.
Key takeaways
Here are key takeaways for filling out and using the Texas 74 221 form:
- Purpose: This form is used to authorize direct deposit for tax refunds from the State of Texas.
- Taxpayer Information: Provide your 11-digit Texas taxpayer number and contact details accurately.
- Tax Types: Mark the relevant tax type(s) in Section 2 to indicate which refund you are requesting.
- Transaction Type: Clearly specify whether this is a new setup, a change, or a cancellation in Section 3.
- Financial Institution Details: Fill out Section 4 with the financial institution's name and routing number. Ensure accuracy.
- Account Verification: It’s advisable for your financial institution to complete the account information section to avoid errors.
- Prenote Test: A prenote test will verify your account details. This process takes six banking days.
- International Payments: If payments will be sent to a foreign institution, indicate this in Section 6 and complete Form 74-227.
- Authorization: Section 7 must be signed to authorize the direct deposit. No changes to the wording are allowed.
- Submission: Return the completed form via mail or fax to the Texas Comptroller's office, ensuring it reaches the correct department.
Following these guidelines will help ensure a smooth processing of your tax refund direct deposit.