What Is A Payment Advice?

Payment advice is a money order that is established at the initiative of the tax authority. When a bill is completed, the tax authority sends the taxpayer a document that indicates a payment amount and the taxpayer's bank details. If the taxpayer agrees to the information on the payment advice, he or she signs it and returns it to the clearinghouse address that is indicated on the payment advice. The clearinghouse, in turn, sends the dated and signed payment advice to the taxpayer's bank, which completes the payment.