Electronic Federal Tax Payment System (EFTPS)
1. What is the EFTPS?
The EFTPS is a program that allows a small business to pay certain federal business taxes electronically. EFTPS allows you to pay your taxes without a coupon, writing a check, or visiting your credit union. Small businesses notify the IRS with the payment information and their account is debited. EFTPS-Direct is the program FAIRWINDS participates in.
2. Do I have to send Federal Tax payments electronically?
The IRS has issued new regulations that change some of the rules for Federal Tax Deposits by electronic funds transfer. The new threshold of $200,000 in aggregate tax deposits will be applied to 1998 deposits. Businesses that exceed the threshold in 1998 will be required to deposit by electronic funds transfer beginning in 2000. Similarly, businesses that exceed the threshold in 1999 or after will be required to deposit by electronic funds transfer after a one-year grace period.
Businesses that must make deposits under the existing $50,000 will be given a fresh start under the new rules. However, once you begin paying taxes electronically with the new $200,000 threshold, you cannot resume making paper deposits in later years if deposits fall below the threshold amount. For further information, please consult your tax advisor.
3. How much does the Tax Payment Service cost?
This service is FREE to all of FAIRWINDS Small Business members.
4. How do I sign up?
To learn more about our tax services, please contact the Internal Revenue Service (IRS) by phone at (800) 555-4477 or online at https://www.eftps.gov. The enrollment form must be completed before payments can be made electronically.
5. Which taxes can be paid electronically through this service?
The following Federal Tax Deposits can be paid electronically:
|
IRS Form # | Description |
| 720 | Quarterly Excise Tax |
| 940 | Employer's Annual Unemployment Tax |
| 941 | Employer's Quarterly Tax |
| 943 | Employer's Annual Tax for Agricultural Employees |
| 945 | Withheld Federal Income Tax |
| 990C | Exempt Cooperative Association Income Tax |
| 990PF | Return of Private Foundation Tax |
| 990T | Exempt Organization Business Income Tax |
| 1041 | Income of Estates & Trusts |
| 1042 | Annual Withholding Tax for US Source Income of Foreign Persons |
| 1120 | US Corporation Income Tax |
| CT-1 | Railroad Retirement Tax & Unemployment |
