Simplify Tax Payments with Treasury’s EFTPS

Do your clients make tax payments? If so, the U.S. Department of the Treasury wants to talk to you about the benefits of paying taxes electronically.

Simplify is a national campaign launched to communicate to tax professionals and small businesses the benefits of paying taxes electronically using the Electronic Federal Tax Payment (EFTPS). EFTPS enables tax professionals, accountants, businesses and individuals to pay federal taxes electronically, including corporate, excise and employment taxes and 1040 quarterly estimated tax payments. EFTPS offers a variety of payment options including the Internet and a telephone voice response system, as well as other electronic solutions for tax preparation and planning firms of all sizes.


Advertisement


Click Here Don’t miss the FRx Express-the traveling FRx Software product and training road show, coming soon to a city near you! Discover helpful FRx Software tips and tricks, see product demonstrations of Microsoft® FRx® and Microsoft Forecaster, and attend a product Q & A forum. Register now!


FRx Software Home Product Information
Training & Consulting Product Demo
Webcast Customer Testimonial Video



EFTPS was introduced in 1996 and has been used to make more than 528.5 million payments totaling over $12.5 trillion. In September alone nearly 6 million payments were processed totaling more than $191.5 billion. More than 1 million of the payments received in September were made online accounting for over $26 billion. September also experienced the largest on-day dollar amount received when $68,782,562,680 was collected on September 15.

“Although EFTPS serves a growing number of taxpayers who recognize it as a reliable, secure and convenient method for doing business with the government, far too many tax preparers and small businesses still use paper coupons,” Donald Hammond, Fiscal Assistant Secretary said in a prepared statement. “Simplify will enable us to build on the recent successes of EFTPS and help encourage additional taxpayers to use the service.”

Tax professionals can find more information online in A Guide for Tax Preparers. Guides can only provide so much information, however. To really understand what the system has to offer CPAs and tax professionals working for small and mid-sized firms, it’s best to hear from someone like you who is using it.

“It is a wonderful tool to have on hand and makes your life easier, especially if you do payroll,” Adewale Akingboye, a sole practitioner at Ade Accounting & Consulting, said. “Most clients are not aware this is possible. You have to present the benefits to clients before they become interested, especially the benefit about not incurring penalties for late payments.”

Akinboye first heard about EFTPS three years ago. It was immediately apparent to him that it would eliminate the headache of sending forms, so he tried it with one client and saw the benefits right away.

“It is a good tool for selling new clients. The convenience and accuracy it brings to filing payments is tremendous,” Akinboye said. “The ability to make payments to prior years is a huge advantage, as is using it to beat filing deadlines and save clients penalties.”

The Department of the Treasury chose to launch the Simplify program now so that it would be in place for the 2006 filing season. Since the EFTPS system is already operational, it can even be used for payments due on December 15, 2005 according to Gary Grippo, Assistant Commissioner, Federal Finance.

“In 2005, 68.4 million tax returns were filed electronically through IRS e-file. IRS now receives more returns electronically than on paper. This breakthrough shows increased public interest in electronic interaction with the government,” Kevin Brown, IRS Commissioner, Small Business/Self-Employed Division said in a prepared statement about the Simplify campaign. “The Simplify campaign exemplifies a wider effort by the Treasury to serve an increasingly wired public through a variety of electronic filing and payment processes, including IRS e-file, e-pay and e-services.”

Grippo confirms that the long-term strategic goal is an all-electronic Treasury, but no specific deadline has been set for that transition. Simplify is the first step and the Treasury is committed to the EFTPS system for this year and next after which it will be evaluated to ensure it is doing what it was intended to do for the next five years.

When asked what accountants at small and mid-sized firms should know about EFTPS, Grippo replied “we want them to know what the benefits are: 24/7 availability, immediate acknowledgement of payment from the IRS, that payments are 31 times less likely to experience a penalty for late payment or errors, and that it gives accountants a new service to sell to both new and existing clients.”

You may like these other stories...

You probably don't want to think about how many times you access the File menu in Excel 2010 or 2013. Personally I think Excel 2010 has the best possible File menu arrangement, other than having Print Preview grafted...
Following other recent high-profile hacking events, investigators discovered yesterday that hackers broke into the draft work paper files of several famous CPA firms. Revealing images of the scantily clad documents have been...
For bitcoin users, the taxman cometh. And you best know how to calculate taxes owed on what the IRS calls convertible virtual currency.In March 2014, the IRS issued Notice 2014-21, which declares virtual currency will be...

Already a member? log in here.

Upcoming CPE Webinars

Sep 18
In this course, Amber Setter will shine the light on different types of leadership behavior- an integral part of everyone's career.
Sep 24
In this jam-packed presentation Excel expert David Ringstrom, CPA will give you a crash-course in creating spreadsheet-based dashboards. A dashboard condenses large amounts of data into a compact space, yet enables the end user to easily drill down into details when warranted.
Sep 30
This webcast will include discussions of important issues in SSARS No. 19 and the current status of proposed changes by the Accounting and Review Services Committee in these statements.
Oct 23
Amber Setter will show the value of leadership assessments as tools for individual and organizational leadership development initiatives.