IRS to eliminate paper coupon deposits

The Internal Revenue Service (IRS) has issued proposed regulations to significantly increase the number of electronic transactions between taxpayers and the federal government.

The proposed regulations (REG 153340-09) would eliminate the rules for making federal tax deposits by paper coupon because the paper coupon system will no longer be maintained by the Treasury Department after Dec. 31, 2010. The proposed regulations generally maintain existing rules for depositing federal taxes through the Electronic Federal Tax Payment System (EFTPS).

The following types of taxes are affected:

1. Corporate income and corporate estimated taxes pursuant to § 1.6302-1
2. Unrelated business income taxes of tax-exempt organizations under section 511 pursuant to § 1.6302-1
3. Private foundation excise taxes under section 4940 pursuant to § 1.6302-1
4. Taxes withheld on nonresident aliens and foreign corporations pursuant to § 1.6302-2
5. Estimated taxes on certain trusts pursuant to § 1.6302-3
6. FICA taxes and withheld income taxes pursuant to § 31.6302-1
7. Railroad retirement taxes pursuant to § 31.6302-2
8. Nonpayroll taxes, including backup withholding pursuant to § 31.6302-4
9. Federal Unemployment Tax Act (FUTA) taxes pursuant to § 31.6302(c)-3
10. Excise taxes reported on Form 720, Quarterly Federal Excise Tax Return, pursuant to § 40.6302(c)-1

The proposed regulations do not alter existing de minimus rules for employers with a deposit liability of less than $2,500 for a return period who are allowed to pay their employment taxes with their quarterly or annual tax return.

Using EFTPS to make federal tax deposits enables depositors to make tax payments 24 hours a day, seven days a week from any locatoin. The EFTPS system allows taxpayers to schedule payment dates up to 120 days advance of the desired payment date.

Information on EFTPS, including how to enroll, can be found at www.eftps.gov or by calling EFTPS Customer Service at 1-800-555-4477.

Comments will be accepted on the proposed regulations through Septemer 22, 2010. Comments can be submitted electronically. A public hearing on the proposed regulations will be held at the IRS building in Washington, D.C. on September 21, 2010.

 

You may like these other stories...

AgFeed agrees to pay $18 million to settle SEC accounting fraud caseMichael Rapoport of the Wall Street Journal reported on Monday that AgFeed Industries Inc. has agreed to pay $18 million to settle US Securities and...
Many accountants struggle with payroll, either because they have too much of it or they don't want to do any of it. Either way, they are at odds with the needs of their business clients. Most clients are looking for a...
Hertz and Icahn make peaceThere won’t be any nasty, protracted proxy battle between Hertz Global Holdings and activist investor Carl Icahn. The rental car chain agreed last Thursday to give Icahn – who has...

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.