If your bank account has ACH blocks in place, Kintsugi may be unable to initiate tax payments on your behalf. This article explains what ACH blocks are, how they impact sales tax payments, and how to fix the issue.
What is an ACH block?
An ACH block is a security feature some banks use to prevent unauthorized debits from your account. While this protects your funds, it can also block legitimate tax payments if not configured correctly.
How this affects your sales tax payments
When ACH blocks are active, Kintsugi may be unable to pull funds from your account. This could result in:
Failed or late tax payments
Potential penalties from state agencies
Disrupted filing workflows
How to resolve the issue
Option 1: Whitelist State ACH Originator IDs with your bank
Kintsugi uses a unique ACH Originator ID to request payments. You can provide this list to your bank to allow authorized tax debits to go through.
✅ What to do:
Contact your bank and request to whitelist ACH Originator IDs.
Check the list of Originator IDs for all states you file in.
This is the preferred long-term solution. Once set up, it ensures tax payments won’t be blocked moving forward.
Option 2: Open a separate bank account for tax payments
Some customers prefer to open a dedicated sales tax bank account without ACH blocks. This account only holds funds for tax purposes and is configured to allow tax agency debits.
✅ Benefits:
No need to manage ACH allowlists
Reduces risk to your main operating account
Avoids issues if state agencies change their bank info unexpectedly
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