How to Pay the IRS with EFTPS

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As the world becomes more and more technology-focused, taxes are something that has moved primarily online. The Electronic Federal Tax Payment System (EFTPS) is a tool provided by the U.S Department of the Treasury free of charge to process many kinds of federal tax payments.  

The EFTPS provides a convenient and easy way to make payments to the IRS. The system is accessible 365 days a year, 24/7, meaning that you can make tax payments at times that are convenient for you, without having to rely on office hours. This electronic system also allows the federal government to debit your account without having to add processing fees to the amount owed. So, how can you pay the IRS with EFTPS?

Also read: Are Bonuses Taxed Differently?

Table Of Contents
 

neon tax sign

What is the EFTPS?

The EFTPS is a tool that is provided to individuals and businesses free of charge as a means to make tax payments online at any time. It can be used to pay income tax, employment tax, and federal excise tax.  

Individuals looking to make their tax payments still have the freedom to choose between using a check, credit card, or the direct pay system offered by the Internal Revenue Service to make their income or self-employment tax payments.

However, corporations are generally bound to make all federal payments via an electronic funds transfer. These payments include income tax, payroll taxes, Medicare and Social Security taxes, as well as installment agreement payments. The easiest way for corporations to make these payments is via the EFTPS.

Also read: Change My Direct Deposit Information With The IRS

 

Why should you use the EFTPS?

Whether the use of EFTPS is required for your business or not, it can be very beneficial to use the system for all eligible federal payments. 

 

Break free from time restraints

The main benefit of using the EFTPS for many business owners and individuals is the freedom from time constraints.  

With the EFTPS you can make payments at whatever time suits your schedule. There is no longer a need to make payments during banking hours or office hours. You don’t even need to be at home or at the office. Payments can be made from anywhere at any time with the electronic system, removing the stress of making your schedule align with that of the IRS.

Also read: File Taxes for the First Time

man on ipad

Secure website processing

Providing sensitive financial information over the internet may feel like a risky or dangerous situation. However, the EFTPS website requires 3-step identification each time the site is used. This detailed identification process allows the IRS to keep your information and data safe.  

As an added layer of security, ensure that you type in the web address each time instead of following links sent via email or text. This can help protect you from any potential scams.

Also read: Is Rent Tax-Deductible?

 

Receive immediate confirmation of payment made

When making tax payments, receiving confirmation that your payment has been received can take a huge weight off your shoulders.  

When making payments using checks, the only confirmation as to whether the IRS received your payment is the arrival or lack of arrival of a late payment notice. This is not the case with online electronic payments. When using the EFTPS individuals and businesses can receive an instant email confirmation that their payment has been received by the IRS.  

Additionally, confirmation emails will contain a unique acknowledgment number which can be used to trace a payment if necessary in the future. Your business or individual payment history is also available to be viewed online at your own discretion whenever you may need it. 

 

Make payment schedules in advance

One of the most useful features of the EFTPS is the ability to schedule payments up to a year in advance.  

The scheduling of estimated quarterly tax payments can take the pressure of deadlines off of small business owners and if scheduled properly can act as a rudimentary automatic payment system.  

If a scheduled payment needs to be canceled or altered, this can be done via the EFTPS site with ease. The only restriction on cancelation is that it is completed 2 working days before the scheduled payment is due to be taken from your bank account.

Also read: Are Moving Expenses Tax Deductible?

 

How to enroll in EFTPS payments

The main drawback of the EFTPS is the lengthy process required to enroll in the system. Registering to access the online system can take several days due to the number of extensive security checks required to verify your identity. While the enrollment process can be lengthy and inconvenient, the importance placed on the security of the system is reassuring. 

The first step in enrolling in EFTPS payments is to gather the required information, this includes your social security number, taxpayer identification number, or your employer identification number. You will also need to provide the name and address that appeared on your previous tax return, and your financial institution’s account number. 

Once you have all your information together, access the EFTPS website and select enroll. Depending on your needs, you will then select either business or individual. Enter the information requested by the system and press submit. 

When the IRS has verified your identity using the information you provided, they will send you a personal identification number to use on the site, this can take up to 5 business days to receive. Once you have received your personal identification number, enter the EFTPS site and log in with your SSN, EIN, and PIN. verify your banking information or your enrollment number and you will be prompted to create a password. Ensure that your password is secure.

You are now able to make payments via the EFTPS.

calculator and sheets of paper

How to avoid EFTPS scams

As with any online payment system, there are going to be scammers attempting to access your personal financial information. To avoid succumbing to such scams, the IRS recommends never clicking on any link sent via email or text. If you receive correspondence from the IRS or the EFTPS asking that you log into your account, close the email or message and access the website manually.  

Scammers can be very sophisticated and create incredibly convincing emails, always access your account manually rather than via a login link. 

 

Final thoughts

The EFTPS provides a convenient way for businesses and individuals to make payments to the IRS. with features that allow same-day tax payments as well as scheduling payments up to a year in advance, this system can be a useful tool in reducing the stress of making tax payments. 


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How to Pay the IRS with EFTPS
Samantha Clark

A Warrington College of Business graduate, Samantha handles all client relations with our top-tier partners. Read More

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