IRS Announcement – New Regulations Expand the Use of Electronic Payment System and Discontinue Paper Coupons in 2011
Are you making all of your federal tax deposits electronically? Do you make your own federal tax deposits? What about your corporate tax payment(s)? Have you ever wanted to check your federal tax payment history for an audit?
The new IRS regulations (T.D. 9507) eliminates making federal tax deposits by paper coupon because the paper coupon system will no longer be maintained by the Treasury Department. The new regulations generally maintain existing rules for depositing federal taxes through the Electronic Federal Tax Payment System. Information on EFTPS, including how to enroll, can be found at the EFTPS website or by calling EFTPS Customer Service at 1-800-555-4477.
What is EFTPS and why should you enroll on the EFTPS website?
EFTPS is a service offered FREE by the U.S. Department of the Treasury to pay federal taxes electronically. All federal taxes can be paid using EFTPS and you can make your payments via the website or a voice response system 24 hours a day, 7 days a week. The system is more secure, reliable and accurate than the old coupon system and payments may be scheduled up to 120 days in advance for businesses and 365 days in advance individuals.
EFTPS will also display all electronic payments made online, by phone, or by a third party within the last sixteen months. This information can be viewed, printed, or even downloaded in files as comma-delimited format for use in other programs, such as Microsoft Excel.
Doesn’t my financial institution make my payment electronically for me?
You should ask your financial institution if it makes ACH Credit payments – not all do – and ask about fees and deadlines associated with this service.
Which taxes will be required to be paid electronically?
Any tax you previously paid with an IRS Form 8109/Form 8109-B coupon.
What if I don’t pay my business taxes electronically?
Businesses with an electronic deposit requirement must make those deposits electronically or face the potential of a 10% penalty for incorrect payment method.
For more information please log on to www.eftps.gov or contact Payroll Control Systems.
The Payroll Control Systems Tax Team
Legal Disclaimer: This article is intended for informational purposes only and by no means should replace or substitute other legal documents (governmental or non-governmental) reflecting similar content or advice. If you have any questions concerning your situation or the information provided, please consult with an attorney, CPA or HR Professional.