If you use the paper 8109B coupons to pay your FICA withholding income taxes or your corporate income and estimated taxes be forewarned. The IRS has issued proposed regs to eliminate the use of the paper coupons and force the use of Electronic Federal Tax Payment System (EFTPS).
EFTPS is a safe convenient way of making your tax payments via the internet or phone. You dictate the day you want the funds moved from your checking account to the Treasury’s account. You can initiate your tax payments 24 hours a day, seven days a week up to 120 days in advance. EFTPS will automatically make your payments for you on the due date you indicate. To enroll online visit https://www.eftps.gov/eftps/.
EFTPS is not a new program and I usually put all my clients on it just because it is so easy to use. But to drop the paper coupons is a little unreasonable on the part of the IRS. Take the new business I am helping this week. They have been up and running for a month and need to submit their payroll taxes to the IRS. I cannot get them enrolled in the program before the deadline and will be forced to use a paper coupon. I wonder what my options will be in this situation when the paper coupon is eliminated.
