Effective 12/31/10, the federal tax deposit program that allows taxpayers to present paper coupons and checks to banks for federal tax payments will end. Effective 1/1/11, all quarterly payments over $2,500 must be made via electronic funds transfer. Taxpayers with a quarterly liability under $2,500 may be able to mail a check with their return. To determine eligibility, refer the taxpayer to his/her tax professional, to the IRS website, www.IRS.gov (search on “Tax Topics 757”) or to 800.830.5215.
Employers currently paying federal taxes with a paper coupon received a packet from the IRS informing them of the rule to end coupon processing after 12/31/10.
Taxpayers have multiple options to pay taxes electronically that include:
Only in extraordinary circumstances, will a wire be sent from the bank (normal wire fees will apply).
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