Nowadays you can do almost anything online, and that includes paying your taxes too! The US Department of Treasury has set up the Electronic Federal Tax Payment System (EFTPS), a free service to taxpayers who wish to pay their taxes to the IRS online.
Enrollment in EFTPS
Enrolling is a fairly straightforward procedure. You can either do it online or by phone. Once you have gone through the prompts and enrolled, you will receive a PIN number which you will use to log in and begin scheduling payments. Expats and other international taxpayers can also enroll with EFTPS, making it more convenient than having to mail tax forms from the other side of the world.
Scheduled Payments with EFTPS
While EFTPS is a convenient system, it is still the taxpayer’s responsibility to set up and initiate tax payments properly. Tax payments must be submitted to EFTPS by 8PM EST at least one calendar day before the tax due date. Taxpayers also need to make sure the appropriate funds are in the bank account designated for EFTPS payments. Taxpayers can check the status of payments made, schedule payments up to 365 days in advance, and can even schedule regular payments as weekly, biweekly, monthly, or quarterly payments. It is a fairly useful service for corporations who need to provide quarterly estimated payments. Payments can be canceled as well, however must do so by 11:59PM EST at least two business days before the tax due date.
If you have a payroll service that makes tax payments on your company’s behalf, you can still enroll with EFTPS. It is a useful way to make sure tax payments have been processed. It also provides some flexibility in case you may have to change payroll service companies in the future and will still have access to EFTPS.
With the convenience of online tax payments, business owners can save time and focus on other matters. Of course, the preparation of the taxes can be another issue, unless you have a proper supporting team for that as well. Which is where we can come in. MiklosCPA helps businesses with their back-room accounting and taxation needs, such as setting up EFTPS for your business and preparing the appropriate quarterly payments. If you would like to learn more about our services, please contact us. Also, follow us on our social media pages for future tax tip articles like this one!