REGULATIONS ELIMINATE PAPER PAYROLL TAX DEPOSITS
The IRS has issued temporary regulations requiring all federal tax deposits (such as employment tax, excise tax, and corporate income tax) to be made using the Electronic Federal Tax Payment System (EFTPS) beginning January 1, 2011.
The regulations state that the IRS will no longer maintain or issue paper deposit coupons after 2010. The regulations do not change the deposit requirements or thresholds. Taxpayers who owe minimal amounts will be permitted to make payment with the filed tax return. For example, Form 941 filers with a tax liability of less than $2,500 may submit payment with the return.
EFTPS, the Electronic Federal Tax Payment System, is a tax payment system provided free by the U.S. Department of Treasury. Pay federal taxes electronically via the Internet or phone 24/7.
Businesses and Individuals can pay all their federal taxes using EFTPS. Individuals can pay their quarterly 1040ES estimated taxes electronically using EFTPS, and they can make payments weekly, monthly, or quarterly. Both business and individual payments can be scheduled in advance.
More than 9.5 million taxpayers are currently enrolled in the system. Since EFTPS started in 1996, there have been over 1 billion electronic payments made, totaling over $22.8 trillion!
For more information, please contact us at 408.288.5111.