EFTPS

Did you know that you never have to write a check to IRS again?

by Karen Atchley, CPA

Partner at Atchley & Associates, LLP

Did you know that you never have to write a check to IRS again?  That is because there are three ways to send money to IRS without writing a check.

  1. Wire Transfer (if your financial institution is set up to make wire transfers to IRS)
  2. Direct Pay going thru the IRS website
  3. Electronic Federal Taxpayer System (EFTPS)

Below is a brief explanation of each method.  Please consult the links below or your tax professional at Atchley & Associates, LLP if you are interested in more details.

Wire Transfer

You may be able to do a same-day wire from your Financial Institution. Contact your Financial Institution for availability, cost, and cut-off times. Download the Same-Day Taxpayer Worksheet. Complete it and take it to your Financial Institution. If you are paying for more than one tax form or tax period, complete a separate worksheet for each payment.

Financial Institutions can refer to the Financial Institution Handbook for help with formatting and processing information.

Direct Pay with Bank Account 

Use this secure service to pay your taxes for Form 1040 series, estimated taxes or other associated forms directly from your checking or savings account at no cost to you.

You can easily keep track of your payment by signing up for email notifications about your tax payment, each time you use IRS Direct Pay.

  • Email notification will contain the confirmation number you receive at the end of a payment transaction.
  • The IRS continues to remind taxpayers to watch out for email schemes. You will only receive an email from IRS Direct Pay if you’ve requested the service.

If you have already made a payment through Direct Pay, you can use your confirmation number to access the Look Up a Payment feature. You can also modify or cancel a scheduled payment until two business days before the payment date.

You can also view your payment history by accessing your online account with the IRS.

Make a Payment              Look Up Payment

Direct Pay is available Monday to Saturday: Midnight to 11:45 p.m. ET and Sunday: 7 a.m. to 11:45 p.m. ET. Other outage times may occur, and IRS will let you know whether Direct Pay is available before you start your session.  Please note that Direct Pay availability has no bearing on your due date, so plan ahead to ensure timely payment.

IRS Direct Pay won’t accept more than two payments within a 24-hour period, and each payment must be less than $10 million. For larger electronic payments, use EFTPS or same-day wire

Electronic Federal Taxpayer System (EFTPS)

If neither of these two payments methods work for you, you can enroll in EFTPS by completing the EFPTS For Individuals form that can be found at EFTPS.gov. (https://www.eftps.gov/eftps/) Please make sure you submit your enrollment application in plenty of time to get enrolled prior to the time that you are needing to make your payment.

Payroll Service Providers (PSP)

The Spring SSA/IRS Reporter includes a useful article offering tips for organizations that use payroll service providers. A payroll service provider (PSP) can be an excellent option for employers that are looking for assistance with payroll processing and payroll tax deposit requirements. However, it is important to remember that the responsibility for timely filing and payment still lies with the employer. The IRS can hold you and your business ultimately responsible for unpaid taxes, or unfiled or late files returns. The IRS offers a few tips if you use a payroll service:

  1. Check to see if your payroll service is listed on the IRS Payroll Service Providers page. The listed providers have passed IRS testing requirements [Click here to see the full list].
  2. Know your tax due dates. The IRS offers Tax Calendar options that can help [Tax Calendar].
  3. Review your payroll tax reports for accuracy before they are filed.
  4. Enroll in EFTPS. You will be able to login and see the tax payments made under your EIN, and make missed payments, if necessary.
  5. Keep your organization’s address as the address of record with the IRS. This way you are sure to see any correspondence from the IRS and make sure that a response is made quickly.
  6. If you suspect your PSP is not complying with regulations, file a complaint with the IRS using Form 14157.

As always, Atchley & Associates, LLP is happy to answer questions or assist you in any way we can.

Reference. Publication 1693 (Rev. 6-2015) Catalog Number 15060W Department of the Treasury Internal Revenue Service www.irs.gov