|
EFTPS FAQ
1. What is EFTPS?
2. Who can use EFTPS?
3.
What types of taxes can be paid through EFTPS?
4. What are
some of the other benefits of using EFTPS?
5. Do I make
the payments myself or is that done through a financial institution
or service provider like WJH.?
6. How does EFTPS work?
7. Do I have to use EFTPS?
8.
What happens if I am required to use EFTPS and my annual tax deposits
fall below $200,000?
9. If I am required to use EFTPS and use a paper coupon
deposit instead, what happens?
10. Do
I need to enroll to use the service?
11. How can I enroll?
12. How long
does it take to complete the enrollment process?
13. Is there a cost
to use EFTPS?
14. Who
controls making the tax payments?
15. Can I
schedule payments in advance?
16. Does money
move over the Internet?
17. Does the
government have access to my checking account?
18. If I want to use the different EFTPS-Direct payment
reporting methods, i.e., Internet or phone, do I have to enroll
for each separately?
19. If I'm already enrolled
and using EFTPS-Direct, can I use EFTPS-OnLine?
20. What if I cannot locate my Confirmation or PIN letter?
21.
What if I lose or forget my Internet Password?
22. What if I use WJH and you make
deposits for me through EFTPS?
23. I have heard
about some program where you get money back by using EFTPS.
What is this about?
24. Where
can I get more information about EFTPS?
If you have any other questions, please
contact us.
1. What is EFTPS?
EFTPS is the Electronic
Federal Tax Payment System developed by the U.S. Department
of the Treasury’s Internal Revenue Service (IRS) and Financial
Management Service (FMS), to enable taxpayers to pay their federal
taxes electronically.
EFTPS makes paying federal
taxes easy and convenient. By enrolling in EFTPS, you can
make your payments electronically from the convenience of your
office or home, using the Internet, PC software, or telephone.
It eliminates the need to complete Federal Tax Deposit (FTD) coupons
or vouchers, write a check, and take that check and coupon to
a financial institution or the Post Office prior to the deadline.
EFTPS is accessible 24 hours a day, 7 days a week. It allows
you to make payments with short lead-time and you can even schedule
future payments if your tax liability is known in advance.
In December, 2005, there
were over 5,990,000 payments made using EFTPS. The
payments totaled $208,677,685,380.
(Click
here to return to top of page.)
2. Who can use EFTPS?
Any individual taxpayer
making payments for Forms 1040, 706 estate, 709 gift taxes or
installment payments can use EFTPS-OnLine.
Any business taxpayer can
use EFTPS. Some business taxpayers are required to use
EFTPS because they have met certain criteria.
Specifically, if your total deposits of designated federal
taxes (including employment taxes, income taxes, Railroad
Retirement taxes, Social Security taxes, and various other
types of non-payroll withholding) during a calendar year
exceed $200,000, you are required to use EFTPS beginning in
the second succeeding calendar year. For example: if you
had more than $200,000 in deposits of designated taxes in
calendar year 2002, you will be required to use EFTPS
beginning January 2004. Once you are required to use
EFTPS, you will continue to be required in subsequent years,
even if your annual tax deposits fall below $200,000
(Click
here to return to top of page.)
3. What types of
taxes can be paid through EFTPS?
Individual taxpayers can pay
all individual tax types including estimated taxes, balance due
payments, installment payments, even estate and gift taxes.
Business taxpayers can pay
all types of federal taxes, including employment taxes, excise
taxes, and corporate income taxes.
(Click
here to return to top of page.)
4. What are some
of the other benefits of using EFTPS?
EFTPS offers many benefits
over the traditional paper system.
•
It’s fast… a payment can be made in minutes.
•
It’s accurate… because there are verification steps along the way,
you are able to check and review your information before it is
sent.
•
It’s convenient… EFTPS is available to you by Internet, PC software,
or phone - 24 hours a day, 7 days a week, and can be used to schedule
payments in advance.
•
It’s easy to use… it’s a step-by-step process that tells you what
information is needed to successfully complete your tax payment
for any federal tax.
•
It’s secure… EFTPS offers the highest levels of security on the
Internet.
(Click
here to return to top of page.)
5. Do I make the
payments myself or is that done through a financial institution
or service provider like WJH.?
It can de done either way.
There are two variants of EFTPS.
a. EFTPS-Direct - With EFTPS-Direct, you access EFTPS
directly to make your tax payment by Internet, PC software, or
phone.
b. EFTPS-Through a Financial Institution - With EFTPS-Through
a Financial Institution, you will first need to make sure that
your financial institution offers a tax payment service and that
you are eligible to use that service. You should also ask about
your financial institution’s deadlines and fees.
(Click
here to return to top of page.)
6. How does EFTPS
work?
With EFTPS-Direct, you make
your tax payments at least one calendar day prior to the tax due
date. Based on your instructions, EFTPS initiates a debit against
your bank account, and your tax records are updated with the IRS.
When using EFTPS-Direct
you can you can make payments with EFTPS-OnLine (http://www.eftps.gov),
EFTPS-PC Software or EFTPS-Phone.
At the completion of the tax payment, you will receive an EFTPS
Acknowledgement Number as a receipt confirming that your payment
instructions have been received. If you have initiated your
payment at least one calendar day before the tax due date, the
payment will be debited against your account on the due date.
With EFTPS-Through a Financial
Institution, you initiate your tax payment through a service
offered by your financial institution. Your financial institution
will debit your account and send the tax payment electronically
to EFTPS. You can use EFTPS-OnLine (www.eftps.gov)
to check your payments or access your payment history, but you
cannot make or cancel a payment through EFTPS-OnLine if you select
EFTPS-Through a Financial Institution on your enrollment form.
(Click
here to return to top of page.)
7. Do I have to use
EFTPS?
You may be required to use it
depending on your circumstances.
Some business taxpayers are required
to use EFTPS because they have met certain criteria—specifically,
if your total deposits of designated federal taxes (including
employment taxes, income taxes, Railroad Retirement taxes, Social
Security taxes, and various other types of non-payroll withholding)
during a calendar year exceed $200,000, you are required to use
EFTPS beginning in the second succeeding calendar year.
For example: if you had more
than $200,000 in deposits of designated taxes in calendar year
2004, you are required to use EFTPS beginning January, 2006.
(Click
here to return to top of page.)
8. What happens if
I am required to use EFTPS and my annual tax deposits fall below
$200,000?
Once you meet the requirement
to use EFTPS, you are required to continue using the system even
if your deposits in future years drop below the threshold amount.
(Click
here to return to top of page.)
9. If I am required
to use EFTPS and use a paper coupon deposit instead, what happens?
If you are required to use
EFTPS and do not, a 10% penalty may be applied. However,
you may qualify for relief from the penalty for failing to deposit
in the proper manner if the reason is due to reasonable cause
and not to willful neglect. The IRS will evaluate each request
for relief on its own merits.
(Click
here to return to top of page.)
10. Do I need to
enroll to use the service?
Yes. You must enroll
in order to set up an account. You can enroll through the
Internet at
www.eftps.gov, or by completing an enrollment form available
from EFTPS Customer Service at 1-800-555-4477 or 1-800-945-8400.
We can also help with enrollment questions.
(Click
here to return to top of page.)
11. How can I enroll?
You can enroll at
www.eftps.com. You need
the following information.
a. Taxpayer Identification Number (TIN) - For businesses,
this is your EIN (Employer Identification Number). For individuals,
this is your SSN (Social Security Number).
b. Financial institution information. This includes
the following.
i. Your financial institution's RTN (Routing Transit Number)
(Note: If you have a question about your financial institution's
RTN, it can be answered by calling them.)
ii. Your bank account number
iii. Your bank account type (checking or savings).
Your confirmation materials
will be created and mailed within 15 business days to the primary
contact name and address you indicate.
Your Personal Identification
Number (PIN) and instructions on how to obtain your Internet Password
will be mailed to your official IRS address of record (this is
the address that appears on your tax return or IRS documents).
(Click
here to return to top of page.)
12. How long does
it take to complete the enrollment process?
It should take you no more
than 10 minutes to complete the online New Taxpayer Enrollment
Form. Once EFTPS receives your information, confirmation
materials that include instructions on how to obtain your Internet
Password will be created and mailed to the name and address you
entered on your enrollment form. Additionally, your PIN
will be mailed to your official IRS address of record (this is
the address that appears on your tax returns or IRS documents).
You should receive your Confirmation materials within 15 business
days after you complete your enrollment.
(Click
here to return to top of page.)
13. Is there a cost
to use EFTPS?
There is no additional fee
due to the federal government for using EFTPS. There are
nominal processing fees that are charged by financial institutions
and by WJH for processing an EFTPS payment.
(Click
here to return to top of page.)
14. Who controls
making the tax payments?
It’s your responsibility to
initiate the tax payment. It will not occur automatically.
Funds will only be debited from your account on the date and in
the amount you indicate when making a payment through EFTPS.
You may set up services through WJH so that we initiate
payroll tax and other federal tax payments through EFTPS for you.
(Click
here to return to top of page.)
15. Can I schedule
payments in advance?
Yes. Business taxpayers
can schedule tax payments up to 120 days in advance, and individual
taxpayers can schedule payments for up to 365 days in advance
of due date.
(Click
here to return to top of page.)
16. Does money move
over the Internet?
No. When you make a payment
using EFTPS-OnLine, only information is transmitted via the Internet.
The exchange of funds still occurs within your financial institution,
and the IRS does not have access to your checking account information.
(Click
here to return to top of page.)
17. Does the government
have access to my checking account?
No. No one has access
to your bank account unless you allow it. As the taxpayer,
you are in total control of initiating all your tax payments through
EFTPS. Based on your tax payment information, your tax payment
will be made on the date you specify. Remember, with EFTPS-OnLine,
only information moves via the Internet. No money is exchanged
over the Internet and the IRS does not have access to your checking
account information.
(Click
here to return to top of page.)
18. If I want to
use the different EFTPS-Direct payment reporting methods, i.e.,
Internet or phone, do I have to enroll for each separately?
No. With EFTPS-Direct,
you only need to enroll once. The payment methods are interchangeable.
For example, if you need to make a tax payment but do not have
access to a PC, you can make your payment by phone. All
EFTPS-Direct payment methods are available 24 hours a day, 7 days
a week.
(Click
here to return to top of page.)
19. If I'm already
enrolled and using EFTPS-Direct, can I use EFTPS-OnLine?
Yes, if you have been
using EFTPS-Direct either by phone or with the PC software
option you can also use PC-OnLine. Because you are
already enrolled in EFTPS-Direct, you already have your PIN.
Now, you need to request and activate an Internet Password to
access EFTPS-OnLine. This security feature ensures you of
the greatest protection in using EFTPS through the Internet.
Every time you access EFTPS-OnLine you will be required to input
your TIN, PIN and Internet Password.
You can learn how to obtain
an Internet Password by calling EFTPS Customer Service at 1-800-555-4477
or 1-800-945-8400.
If you are new to EFTPS and
enroll online, you will receive instructions for obtaining your
Internet Password in your Confirmation materials.
(Click
here to return to top of page.)
20. What if I cannot
locate my Confirmation or PIN letter?
Call EFTPS Customer Service
at 1-800-555-4477 or 1-800-945-8400.
(Click
here to return to top of page.)
21. What if I lose
or forget my Internet Password?
You will need to locate your
original enrollment Confirmation materials or PIN letter you received
by mail and call EFTPS Customer Service at 1-800-555-4477 or 1-800-945-8400.
(Click
here to return to top of page.)
22. What if I use WJH and
you make deposits for me through EFTPS?
You should still enroll in
EFTPS. You can check your payment history or make other
payments online if you enroll for EFTPS-Direct.
If you wish to make payments
other than those being made by us, you will need to complete an
additional Enrollment through EFTPS-OnLine or by calling 1-800-555-4477
or 1-800-945-8400 for a paper enrollment form. For example, if
you are a business and we make your payroll tax deposits for you
and you wish to make your year-end 1120 corporate income tax payments
through EFTPS-OnLine, you would complete an Additional Enrollment
under your Taxpayer Identification Number (EIN). You can
do this by clicking on "Additional Enrollment" at
www.eftps.gov.
(Click
here to return to top of page.)
23. I have heard
about some program where you get money back by using EFTPS.
What is this about?
You may be entitled to money
back from the IRS, simply by utilizing the EFTPS system.
Anyone who paid a penalty in 941 tax has the ability to receive
a refund. First, you pay the penalty, then enroll in EFTPS.
Simpy use EFTPS to pay all 941 tax payments for four consecutive
quarters, and the IRS will review the four quarters previous to
your use of EFTPS, and send you a check for the most recent penalty
paid including interest. For example, if you paid a penalty
in the 1st quarter of 2005, you can sign up for EFTPS
now in the 3rd quarter, and if you stay current on
all 941 payments and make them all electronically, you will receive
a check from the IRS after the 3rd quarter of 2006.
(Click
here to return to top of page.)
24. Where can I get
more information about EFTPS?
Check the EFTPS web site at
www.eftps.gov or call the EFTPS
office at 1-800-945-8400, or contact
us at WJH.
(Click
here to return to top of page.)
|
