Federal Tax Deposit Alert – Paper Coupon Payments Discontinued in 2011
Information compiled by BDO Seidman Alliance firm, Marvin & Co.
Beginning January 1, 2011, the Treasury Department will no longer accept payments made by paper coupon. Instead, they should be made by using the electronic Federal tax payment system. Federal tax deposits can be made easily, securely, and conveniently, 24 hours a day, 7 days a week, online or by telephone.
Taxes Covered by the New Rule
- Employment taxes
- Corporate income taxes
- Unrelated business income taxes (paid by tax-exempt organizations)
- Excise taxes
- Estimated taxes on certain trusts
- Retirement distribution withholding
- Backup withholding
- Nonresident alien and foreign corporation withholding
Exception
Employers who have an employment tax deposit liability of less than $2,500 for a return period will be allowed to pay their employment taxes by check with their quarterly or annual returns.
How to Enroll
- Go to www.eftps.gov and select Enrollment
- Read and accept the Privacy Act and Paperwork Reduction Act
- Select whether enrollment is for a Business, an Individual, or a Federal Agency
- Complete the enrollment application with the following information:
- Taxpayer Identification Number
- Name and address as they appear on your IRS tax documents
- Bank account number and routing transit number
- You will receive a PIN by regular mail
- Then call 1-800-982-3526 after receiving your PIN to get a temporary internet password
- An internet password will not be necessary if you will be making your payments only by telephone
How to Make Payments by Internet
- Go to www.eftps.gov and select Make Payment
- Log in with your Taxpayer Identification Number, PIN, and internet password
- Enter your payment information
- Save a copy of the Payment Confirmation page upon completion. This page contains the EFT Acknowledgement Number that acts as your receipt.
How to Make Payments by Telephone
- Call the toll-free number
- 1-800-555-3453 for businesses or 1-800-315-4829 for individuals
- Follow the voice prompts to select the tax form, payment type, period and amount
- Record your EFT Acknowledgment Number
- You will need your Taxpayer Identification Number and PIN