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Focus On Small Business: IRS Eliminates Federal Tax Deposit Coupons

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The US Treasury Department has begun an initiative to increase electronic transactions. Beginning January 1, 2011, most businesses currently using paper Federal Tax Deposit (FTD) coupons will be required to make their federal tax deposits electronically.
December 6, 2010

The US Treasury Department has begun an initiative to increase electronic transactions. Beginning January 1, 2011, most businesses currently using paper Federal Tax Deposit (FTD) coupons will be required to make their federal tax deposits electronically.

The exception to this new electronic filing standard is businesses with less than $2,500 in quarterly payroll tax liabilities. Instead, taxpayers are required to enroll in Electronic Federal Tax Payment System (EFTPS) to remit payments in 2011 and beyond. EFTPS is a free tax payment system provided by the U.S. Department of Treasury in which tax payers can pay federal taxes using the internet or telephone. The system is described as being secure, fast, convenient and easy to use.

Enrolling in EFTPS is simple. You will need your taxpayer identification (ID) number, financial institution routing number and account number, and address and name as they appear on your IRS documents.

Once you have gathered this information, access www.eftps.gov. Click on “Enroll” and select business or individual enrollment. Complete the requested information and click “Submit” when finished. Within 10 to15 days, you will receive an EFTPS Confirmation Package by mail with instructions for obtaining a password. A PIN will also be mailed to you separately.

Once you have obtained a password and PIN you are ready to begin making payments. Access www.eftps.gov and click on “Make A Payment.” You will want to have your tax ID number, PIN and password available. Select the type of tax you will be paying and enter the requested information (amount, date, etc). Once the payment is submitted, the system will provide you with an EFT acknowledgement number which you will want to retain as a receipt.

Payments can also be made over the telephone. The EFTPS payment number is 1-800-555-3453. You will be prompted to enter your tax ID number, amount, date, PIN, etc. You will then be provided with an acknowledgement number just as when you pay online.

Additional information can be found by visiting www.eftps.gov

For assistance with enrolling or submitting payments via EFTPS, contact RubinBrown’s Entrepreneurial Services Group.


Under U.S. Treasury Department guidelines, we hereby inform you that any tax advice contained in this communication is not intended or written to be used, and cannot be used by you for the purpose of avoiding penalties that may be imposed on you by the Internal Revenue Service, or for the purpose of promoting, marketing or recommending to another party any transaction or matter addressed within this tax advice. Further, RubinBrown LLP imposes no limitation on any recipient of this tax advice on the disclosure of the tax treatment or tax strategies or tax structuring described herein.

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