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We wanted to take the opportunity to introduce the EFTPS to you, along with its benefits and requirements. EFTPS (Electronic Federal Tax Payment System) is a secure government web site that uses the highest level of security available.
It allows you to make your tax payments via the Internet or phone. Payments can be initiated 24 hours a day, seven days a week and can be scheduled 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:
o The total deposits of such taxes in 2008 were more than $200,000 or
o 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.
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.
Certain taxpayers are also required to pay their Texas taxes electronically by registering with TEXNET. If a taxpayer pays more than $10,000 annually in Texas state taxes, including franchise and sales tax, they must pay all of their taxes through TEXNET or be subject to penalties. The total taxes are calculated separately to determine if that type of tax must be paid electronically.
We would be happy to help you with weighing the benefits of this or any other opportunity, and to answer any of your questions regarding the requirements. Please call our offices at 972-644-7112 and ask for Sarah Hancock or Leisha Gardner to discuss any questions or concerns.
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