Federal Tax Deposit Coupon Processing Ends on 12/31/10
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:
- Customer-initiated ACH debits via the Electronic Federal Tax Payment System (EFTPS) Internet or voice response system (additional information is available at www.eftps.gov)
- ACH credit origination through VistaBank’s eCorp banking product
- Payments initiated on the customer’s behalf by other authorized third parties, such as tax professionals or payroll services that sometimes result in and ACH debit transaction
Only in extraordinary circumstances, will a wire be sent from the bank (normal wire fees will apply).