Proposed Changes to Electronic Payment System
The IRS has issued proposed regulations eliminating the paper deposit coupon system and replacing it with mandatory use of the Electronic Federal Tax Deposit System (EFTPS) begininng January 1, 2011.
EFTPS is currently required only for taxpayers whose deposits of certain taxes exceed $200,000 annually. The proposed regulations would require use of the EFTPS for depositing certain taxes, including withholding, FICA, FUTA, and corporate income and estimated taxes. Some businesses with minimal amounts of tax would not be subject to the EFTPS requirements and could still remit payments with the related tax return.
The proposed regulation is expected to be made final by the end of this year. The existing deposit requirements, thresholds, etc. would generally remain the same.
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