SELECTIVE ESCROW OF FUNDS BASED ON TRANSACTION RECEIPTS

• US 20140006192A1
• Filed: 06/29/2012
• Published: 01/02/2014
• Est. Priority Date: 06/29/2012
• Status: Abandoned Application

• Current Assignee: DAVO Technologies LLC (Avalara Incorporated)
• Original Assignee: DAVO Financial Services LLC
• Inventors: Brown, Owen H., Joseph, David N.
• Application Number:
  US13/537,779
• Publication Number:
  US 20140006192A1
• Time in Patent Office: Days
• US Class Current: 705/19
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/20 Point-of-sale [POS] network systems
• CPC Class Codes: G06Q 20/40 Authorisation, e.g. identification of payer or payee, verification of customer or shop credentials; Review and approval of payers, e.g. check credit lines or negative lists
• CPC Class Codes: G06Q 20/405 Establishing or using transaction specific rules
• CPC Class Codes: G06Q 30/04 Billing or invoicing
• CPC Class Codes: G06Q 30/06 Buying, selling or leasing transactions
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03

Abstract

A computer-implemented method is provided for segregating funds associated with transactions of a seller. Such method may comprise storing data relating to a seller; and determining a sales amount corresponding to transactions of the seller associated with a closeout period. The method may include determining an escrow amount based on the sales amount and a tax rate applicable to the transactions. An instruction can be transmitted to an electronic funds processor (EFP) to direct the EFP to credit an escrow account with the escrow amount.

Claims

1. A computer-implemented method performed by at least one computer system for segregating funds associated with transactions of a seller to provide a source of funds available for payment to a payee, the method comprising:

(a) storing data relating to a seller;

(b) determining a sales amount corresponding to one or more transactions of the seller associated with a closeout period;

(c) determining an escrow amount based on the sales amount and a tax rate applicable to the one or more transactions; and

(d) transmitting an instruction to an electronic funds processor (EFP) to direct the EFP to credit an escrow account with the escrow amount when the sales amount equals or exceeds the escrow amount.

2. The method of claim 1, wherein step (a) comprises determining a sales amount associated with a sales registry device, and the sales registry device is configured to communicate information for authorization of and entry of the one or more transactions over a wireless communication interface.

3. The method of claim 2, wherein the sales registry device comprises a mobile computing device having an open industry platform configured to permit user-reconfiguration thereof by installation of program software.

4. The method of claim 3, wherein the mobile computing device is configured to receive information from a card via a mobile card reader, and to transmit an authorization request for at least one transaction based on the received information.

5. The method of claim 1, wherein the sales amount is associated with a sales registry device and the sales registry device comprises a point of sale terminal.

6. The method of claim 1, wherein step (b) includes determining a first sales amount associated with one or more non-bank card transactions during the closeout period, and

determining a second sales amount associated with one or more bank card transactions during the closeout period,

and the step of transmitting an instruction to the EFP includes transmitting an instruction to direct the EFP to credit the escrow account with the escrow amount when the second sales amount at least equals the escrow amount.

7. The method of claim 6, wherein the first and second sales amounts are determined using information transmitted from at least one sales registry device, the sales registry device including at least one point of sale terminal of the seller.

8. The method of claim 6, wherein the one or more non-bank card transactions are each facilitated using a payment instrument selected from the group consisting of personal checks, money orders, bank checks, travelers checks, gift checks, gift certificates, pre-paid cards, e-wallets, gift cards and cash.

9. The method of claim 1 further comprising:

determining a payable amount to be paid from the escrow account; and

directing an institution to debit the payable amount from the escrow account for payment to a tax authority.

10. The method of claim 9, wherein the step of directing an institution to debit the payable amount from the escrow account includes transmitting at least one instruction from a first computer system to a second computer system associated with the institution, the at least one instruction including information representative of the account and the tax payable amount.

11. The method of claim 6 further comprising:

registering a third sales amount based on at least one of the first or second sales amounts corresponding to each of a plurality of closeout periods within a predetermined tax reporting interval, the registering performed using information received from the at least one sales registry device representing the sale amount in each of the closeout periods; and

preparing and transmitting a tax return for the predetermined tax reporting interval to a reporting authority based on the third sales amount.

12. A system for segregating funds associated with transactions of a seller to provide a source of funds available for payment to a payee, comprising:

a computer system; and

instructions executable by the computer system to perform a method comprising;

(a) storing data relating to a seller;

(b) determining a sales amount corresponding to one or more transactions of the seller associated with a closeout period;

(c) determining an escrow amount based on the sales amount and a tax rate applicable to the one or more transactions; and

(d) transmitting an instruction to an EFP to direct the EFP to credit an escrow account with the escrow amount when the sales amount equals or exceeds the escrow amount.

13. The system of claim 12, further comprising a sales registry device, wherein step (a) comprises receiving information relating to one or more transactions associated with the sales registry device during the closeout period, wherein the sales registry device is of a type configured to communicate information for authorization of and entry of the one or more transactions over a wireless communication interface.

14. The system of claim 13, wherein the information relating to the one or more transactions is associated with a sales registry device of a type comprising an open industry platform configured to permit user-reconfiguration thereof by installation of program software.

15. The system of claim 14, wherein the sales registry device comprises a smartphone.

16. The system of claim 12, further comprising at least one sales registry device having a point of sale terminal for providing the information relating to the one or more transactions.

17. The system of claim 12, wherein step (b) includes determining a first sales amount associated with one or more non-bank card transactions during the closeout period,

determining a second sales amount associated with one or more bank card transactions during the closeout period,

and the step of transmitting an instruction to the EFP transmits an instruction to direct the EFP to credit the escrow account with the escrow amount when the second sales amount at least equals the escrow amount.

18. The system of claim 17, wherein step (b) includes determining the first and second sales amounts using information associated with the closeout period transmitted from at least one sales registry device.

19. The system of claim 12, further comprising:

determining a payable amount to be paid from the escrow account; and

directing an institution to debit the payable amount from the escrow account for payment to a tax authority.

20. The system of claim 19, wherein the step of directing an institution to debit the payable amount from the escrow account includes transmitting at least one instruction from a first computer system to a second computer system associated with the institution, the at least one instruction including information representative of the account and the tax payable amount.

21. The system of claim 17,

wherein the instructions further include instructions executable by the computer system to register a third sales amount based on at least one of the first or second sales amounts corresponding to each of a plurality of closeout periods within a predetermined tax reporting interval, the registering performed using information received from at least one sales registry device representing the sales amount in each of the closeout periods, and the instructions further including instructions executable by the computer system to prepare and transmit a tax return for the predetermined tax reporting interval to a reporting authority based on the third sales amount.

22. A tangible storage medium having computer-readable instructions recorded thereon, the instructions being executable by a computer system to perform a method, the method comprising:

(a) storing data relating to a seller;

(b) determining a sales amount corresponding to one or more transactions of the seller associated with a closeout period;

(c) determining an escrow amount based on the sales amount and a tax rate applicable to the one or more transactions; and

(d) transmitting an instruction to an EFP to direct the EFP to credit an escrow account with the escrow amount when the sales amount equals or exceeds the escrow amount.

23. The tangible storage medium of claim 22, wherein step (b) comprises receiving information relating to one or more transactions associated with at least one sales registry device, wherein the sales registry device is of a type configured to communicate information of the one or more transactions over a wireless communication interface.

24. The tangible storage medium of claim 23, wherein the sales registry device comprises an open industry platform configured to permit user-reconfiguration thereof by installation of program software.

25. The tangible storage medium of claim 22, wherein step (b) includes determining a first sales amount associated with one or more non-bank card transactions during the closeout period,

determining a second sales amount associated with one or more bank card transactions during the closeout period,

and the step of transmitting an instruction to the EFP transmits an instruction to direct the EFP to credit the escrow account with the escrow amount when the second sales amount equals or exceeds the escrow amount.

26. The tangible storage medium of claim 25, wherein step (b) comprises determining the first and second sales amounts using information received from at least one sales registry device.

27. The tangible storage medium of claim 22, further comprising:

determining a payable amount to be paid from the escrow account; and

directing an institution to debit the payable amount from the escrow account for payment to a tax authority.

28. The tangible storage medium of claim 25, wherein the instructions further comprise instructions which are executable to register a third sales amount based on at least one of the first or second sales amounts corresponding to each of a plurality of closeout periods within a predetermined tax reporting interval, the registering performed using information received from the at least one sales registry device representing the sale amounts in each of the closeout periods;

and

to transmit a tax return for the predetermined tax reporting interval to a reporting authority based on the third sales amount.

29. A computer-implemented method performed by at least one computer system for directing funds associated with transactions of a seller for payment to a payee, the method comprising:

(a) storing data relating to a seller and at least one payee to whom payment is to be made;

(b) determining a sales amount corresponding to one or more transactions of the seller associated with a closeout period;

(c) determining a tax payable amount based on the sales amount and a tax rate applicable to the one or more transactions; and

(d) transmitting an instruction to an EFP to direct the EFP to credit the payee with the tax payable amount when the sales amount equals or exceeds the tax payable amount.

30. The method of claim 29, wherein step (a) comprises determining a sales amount associated with a sales registry device, wherein the sales registry device is of a type configured to communicate information of the one or more transactions over a wireless communication interface.

31. The method of claim 30, wherein the sales registry device comprises a portable open industry computing platform configured to permit user-reconfiguration thereof by installation of program software.

32. The method of claim 30, wherein the portable open industry computing platform further comprises a mobile card reader, wherein the sales registry device is configured to receive information associated with a customer account from a card via the mobile card reader, and is configured to transmit an authorization request for a transaction of the one or more transactions based on the received customer account information.

33. The method of claim 29, wherein step (b) includes determining a first sales amount associated with one or more non-bank card transactions during the closeout period, and

determining a second sales amount associated with one or more bank card transactions during the closeout period,

and the step of transmitting an instruction to the EFP includes transmitting an instruction to direct the EFP to credit the account of the payee with the tax payable amount when the second sales amount equals or exceeds the tax payable amount.

34. The method of claim 33, wherein the first and second sales amounts are determined using information transmitted from at least one sales registry device.

35. The method of claim 33, wherein the step of determining the tax payable amount comprises determining a payable amount as one amount selected from, or the sum of two or more amounts selected from the group consisting of:

(i) an amount estimated to pay a predetermined sum from one or more of the first and second sales amounts over a predetermined number of closeout periods, wherein the estimated amount can be fixed or can vary during the predetermined number of closeout periods,

(ii) an amount being a predetermined percentage of one or more of the first and second sales amounts, or

(iii) an amount being a sum of a predetermined percentage of at least one of the first and second sales amounts,

wherein said predetermined percentage comprises at least one of;

(i) the seller tax rate, or

(ii) an estimate for paying the predetermined sum from the one or more of the first and second sales amounts over a predetermined number of sales periods.

36. The method of claim 29, wherein the step of directing the EFP to credit the payee with the tax payable amount includes transmitting at least one instruction from a first computer system to a second computer system associated with the institution, the at least one instruction including information representative of an account of the payee and the tax payable amount.

37. The method of claim 33, further comprising:

registering a third sales amount based on at least one of the first or second sales amounts corresponding to each of a number of closeout periods within a predetermined tax reporting interval; and

transmitting a tax return for the predetermined tax reporting interval to a reporting authority based on the third sales amount.

38. A computer-implemented method performed by at least one computer system for impounding escrow funds associated with transactions of a seller, the method comprising the steps of:

(a) storing data relating to a seller;

(b) determining a sales amount corresponding to one or more transactions of the seller associated with a closeout period;

(c) determining an escrow amount based on the sales amount and a tax rate applicable to the one or more transactions; and

(d) transmitting an instruction to an institution to direct the institution to transfer the escrow amount from an account of the seller to an escrow account when the sales amount equals or exceeds the escrow amount.

39. The method of claim 38, further comprising:

determining a payable amount to be paid from the escrow account; and

directing an institution to debit the payable amount from the escrow account for payment to a payee.

40. The method of claim 39, wherein step (d) is performed by a first computer system and the step of directing an institution to debit the payable amount from the escrow account includes transmitting at least one instruction from a first computer system to a second computer system associated with the institution, the at least one instruction including information representative of the account and the payable amount.

41. A computer-implemented method performed by at least one computer system for impounding escrow funds associated with transactions of a seller, the method comprising the steps of:

(a) storing data relating to a seller, and at least one payee to whom payment is to be made;

(b) determining a sales amount corresponding to one or more transactions of the seller associated with a closeout;

(c) determining a tax payable amount based on the sales amount and a tax rate applicable to the one or more transactions; and

(d) transmitting an instruction to an institution to direct the institution to transfer the tax payable amount from an account of the seller for credit to the payee when the sales amount equals or exceeds the tax payable amount.

42. The method of claim 41, wherein the step of transmitting the instruction to the institution includes transmitting at least one instruction from a first computer system to a second computer system associated with the institution, the at least one instruction including information representative of the account and the tax payable amount.

43. A computer-implemented method performed by at least one computer system for directing funds associated with an online transaction between a buyer and a seller for payment to a payee, the method comprising:

(a) determining an applicable tax authority which may tax the online transaction from among a plurality of tax authorities, the applicable tax authority determined based at least partly on data relating to at least one of the buyer or a location to which goods or services are provided or deemed provided in accordance with the transaction;

(b) determining a tax amount associated with the online transaction in accordance with the applicable tax authority and a tax rate applicable to the online transaction; and

(c) performing at least one of;

directing an EFP associated with the online transaction to withhold the tax amount for payment to the applicable tax authority;

directing an EFP associated with the online transaction to credit an escrow account with the tax amount;

directing an institution to withdraw the tax amount from an account of the seller for payment to the applicable tax authority;

or

directing an institution to transfer the tax amount from an account of the seller and credit an escrow account with the tax amount.

44. The method of claim 43, wherein step (b) further determines the tax amount in accordance with the sale amount of the online transaction.

45. The method of claim 43, wherein the applicable tax authority determined in step (a) comprises a first applicable tax authority and a second applicable tax authority, and step (b) includes determining a first tax amount associated with the online transaction and the first applicable tax authority, and a second tax amount associated with the online transaction and the second applicable tax authority, and step (c) is performed with respect to each of the first and second tax amounts.

46. The method of claim 43, wherein step (b) is performed based at least partly on a sale amount of the transaction, and step (c) comprises directing the EFP to credit an escrow account with the tax amount.