There are multiple ways for a small business to remit moneys due the federal government but the safest easiest to use system is the Federal Electronic Taxpayer Payment System (EFTPS).
Small businesses must make frequent tax and other deposits to the U.S. Treasury on a regular basis. Nearly all
EFTPS is available 24 hours a day, 7 days a week and you can schedule payments in advance.
Certain taxpayers are required to use the EFTPS:
- An entity (corporation, S corporation, trust) must make electronic deposits of all depository taxes (such as employment tax, excise tax, and income tax) using the Electronic Federal Tax Payment System (EFTPS) in 2010 if:
- The total deposits of such taxes in 2008 were more than $200,000 or
- The entity was required to use EFTPS in 2009.
- If the entity is required to use EFTPS and fails to do so, it may be subject to a 10% penalty. If the entity is not required to use EFTPS, it can participate voluntarily.
Smaller businesses are not required to use the system, but may do so for convenience and record-keeping.
For EFTPS deposits to be made timely, the taxpayer must initiate the transaction at least 1 business day before the date the deposit is due. It takes approximately 15 calendar days to receive your Personal Identification Number (PIN) which is required to use the EFTPS, so this needs to be considered if you are required to use this payment method.
For more information on EFTPS or to enroll in EFTPS, visit www.eftps.gov or call EFTPS Customer Service at 1-800-555-4477 (for business payments) or 1-800-316-6541 (for individual payments) to receive an Enrollment Form.
If a corporation does not use EFTPS, you must deposit corporation income tax payments (and estimated tax payments) with Form 8109, Federal Tax Deposit Coupon. If you do not have a preprinted Form 8109, use Form 8109-B to make deposits. You can get this form by calling 1-800-829-4933 or visiting an IRS taxpayer assistance center.
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