The Government Doesn't Want Your Check Anymore! | Tax Tip of the Week | No. 56

Going Electronic in 2011

Consistent with a Financial Management Service initiative announced in April, 2010, the IRS has issued proposed regulations to significantly increase the number of electronic transactions between taxpayers and the federal government. These proposed regulations would eliminate the use of coupons to make tax payments. Instead, payments starting after December 31, 2010 would need to be made through the Electronic Federal Tax Payment System (EFTPS). The proposed changes would affect both business and individual tax payers. Business owners would need to pay their corporate taxes, excise taxes and payroll taxes via EFTPS. Individual tax payers will need to use EFTPS to make any estimated quarterly tax payments. Per an IRS spokesperson, “Using EFTPS to make federal tax deposits provides substantial benefits to both taxpayers and the government. EFTPS users can make tax payments 24 hours a day, seven days a week from home or your office.”Information on EFTPS, including how to enroll, can be found at www.eftps.gov.Additional information can also be obtained by visiting:* Pay Taxes Online: Publication 4132 * The Secure Way to Pay your Federal Taxes: Publication 966 We will keep you posted when the final regulations are written, but it looks like we are going to need to learn a new method for paying our federal taxes. As always, you can contact us in Dayton at 937-436-3133 and in Xenia at 937-372-3504. Or visit our web site. Rick Prewitt - the guy behind TTW ...until next week.