The IRS has issued proposed regulations that would eliminate paper coupons for deposits of employment taxes, corporate income and estimated taxes, and many other taxes (REG-153340-09). The paper 8109 coupon payment system will be shut down at the end of 2010. Taxpayers currently still using the paper coupons to make federal payroll and corporate tax payments should make plans to sign up for the EFTPS system by December 2010 to avoid last minute problems and delays when the paper coupon system is shut down December 31, 2010. You can sign up for electronic payments at www.eftps.gov.
Alternatively, taxpayers can utilize the services of a payroll processing company such as Complete Payroll, Inc. to have all payroll tax payments made electronically.
With this change, taxpayers will be required to use the IRS’ Electronic Federal Tax Payment System (EFTPS) to make federal tax deposits of various withheld and estimated taxes.
Using EFTPS to make federal tax deposits provides substantial benefits to both taxpayers and the government. EFTPS users can make tax payments 24 hours a day, seven days a week from home or the office. Deposits can be made online with a computer or by telephone. EFTPS also significantly reduces payment-related errors that could result in a penalty. The system helps taxpayers schedule dates to make payments even when they are out of town or on vacation when a payment is due. EFTPS business users can schedule payments up to 120 days in advance of the desired payment date.
Steve Trojan, CPA is owner of SMT & Associates, Inc. (www.smt-associates.com), a Crystal Lake IL based tax and accounting firm, and Complete Payroll Inc, (www.completepayrollinc.com) a payroll processing firm. He specializes in tax and accounting issues affecting small business owners.
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