Avoid FTG Penalties by Going Electronic
To avoid returned payments and potential penalties, consider using EFTPS, the Electronic Federal Tax Payment System. It is a tax payment system providedfreeby the U.S. Department of Treasury. Pay federal taxes electronically via the Internet or phone 24/7. VisitEFTPSto enroll.
Businesses and Individuals can pay all their federal taxes using EFTPS. Individuals can pay their quarterly 1040ES estimated taxes electronically using EFTPS, and they can make payments weekly, monthly, or quarterly. Both business and individual payments can be scheduled in advance.
More than 9.5 million taxpayers are currently enrolled in the system. Since EFTPS started in 1996, there have been over1 billionelectronic payments made, totalingover $23.6 trillion!
EFTPS via the Internetis a secure government web site that allows users to make federal tax payments. Every user must have a secure Internet browser with 128-bit encryption in order to access the site. To log on to the system, an enrolled user must be authenticated with three pieces of unique information: Taxpayer Identification Number (EIN or SSN), EFTPS Personal Identification Number (PIN) and an Internet Password. The combination of these three pieces of identification adds to the security of the site and the privacy of taxpayer data.
By 8:00 p.m.(ET) at least one calendar day in advance of the due date, youaccess EFTPS directly to report your tax information. You will instruct EFTPS to move the funds from your account to the Treasury’s account for payment of your federal taxes.Funds will not move from your account until the date you indicate. You receive an immediate acknowledgement of your payment instructions, and your bank statement will confirm the payment was made.
You can initiate your tax payment 24/7. As an added convenience, EFTPS allows taxpayers to schedule tax payments in advance. Businesses can schedule payments up to 120 days in advance of their tax due date. Individuals can schedule payments up to 365 days in advance of their tax due date. EFTPS will automatically make your payments for you on the due date you indicate.Scheduled payments can be changed or cancelled up to 2 business days in advance of the scheduled payment date.
You can use EFTPS to makeallyour federal tax payments, including income, employment, estimated and excise taxes.
For more information about EFTPS read the entire article here.