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Using direct deposit
For fast, reliable, and convenient payment of your income and payroll taxes, you may want to use direct deposit. Direct deposit is an electronic-payment service.
The IRS's direct deposit system is called EFTPS. If you don't already use EFTPS, you may sign up for free at the EFTPS Web site. You can reach the electronic-payment service at (800) 555-8778.
Your business may already be required to use EFTPS. If you paid more than $200,000 in all taxes (including corporate income and excise tax) last year, the IRS requires you to use EFTPS. If you were required to use EFTPS in a prior year, the IRS requires you to use it in future years.
If you are required to use EFTPS but do not, you may owe a penalty of as much as 10% of your tax liability.
To make tax payments on time with EFTPS, enter a tax-payment report and submit it by 8 p.m. Eastern Standard Time at least one calendar day prior to your tax payment due date. EFTPS automatically charges your account and credits the U.S. Treasury's bank account.
To use EFTPS, your Web browser version must be at least Internet Explorer 6.0. There is no fee for using EFTPS.
If you do not use EFTPS, you can deposit your taxes at a financial institution that is authorized to receive payments for the IRS. You submit a Federal Tax Deposit (FTD) coupon with your payment.
If you are a new business, you should submit your employer identification number (EIN) to the IRS. The IRS will send you a booklet of FTD coupons to make periodic tax payments and will automatically replenish the coupons.
Next Topic: Tax forms & information
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