Virtually all of the Federal and State taxing authorities want to make it just as easy as possible for you to pay your taxes. You may remember many years ago when there was the multi-use Federal Tax Deposit coupon (Form 8109). It was about the size of a standard check, could be used for different tax deposits, but the deposit itself had to be made in a Federal depository bank. Over the past 15 years major improvements have been provided to taxpayers everywhere – choose your “weapon”! You have the option to pay using:
1)Â Electronic withdrawal from your bank account
2)Â Your telephone
3)Â Either your debit or credit card
4)Â A personal check and the U.S. Postal System, or
5)Â The Electronic Federal Tax Payment System (EFTPS)
This FREE system began in 1996. If you’re not familiar with the EFTPS, you can obtain more information at this website: http://eftps.gov There’s information on how to enroll, how to make payments, payment records that are available to both the business owner and to individual taxpayers, and the Frequently Asked Questions (FAQs) via this link: https://www.eftps.gov/eftps/direct/FAQGeneral.page. You can even enroll on line! This is an encrypted, secure website.Â
Payments must be scheduled at least one calendar day prior to the tax due date by 8:00 p.m. ET. Your payment instruction will be executed on the date you selected, and your records will be updated at the IRS. There is an advantage here for improving either your personal or business cash flow. You retain your cash or working capital until the due date for the deposit or the date that you select for your payment(s). If you are uncomfortable with the Federal or state government having access to your bank account, open a separate or special account just for your tax payments. Most banks and financial institutions do not impose additional charges for these accounts. Here is additional information on this subject:Â
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