In a letter dated February 20, 2014, the Internal Revenue Service (IRS) sent EFTPS Inquiry PINs to taxpayers whose tax professional enrolled them in the Electronic Federal Tax Payment System (EFTPS). EFTPS is the system through which federal tax payments are made for employment taxes and many other tax types. The letter does not mean that your tax professional has not made payments; it communicates that taxpayers should review their account regularly to ensure payments are being made.
Form 8655 Authorizes Reporting Agents to Make Deposits and Payments on Behalf of Taxpayers
Taxpayers can authorize reporting agents to perform certain functions on behalf of the taxpayers. Form 8655 can be used to authorize a reporting agent to do the following:
- Sign and file certain returns.
- Make deposits and payments for certain returns.
- Receive duplicate copies of tax information, notices, and other written and/or electronic communication regarding any authority granted.
- Provide IRS with information to aid in penalty relief determinations related to the authority granted on Form 8655.
The IRS, as stated in the letter, “recommends you monitor your EFTPS account to ensure your tax professional is making timely tax payments for you.” The PIN provided by EFTPS in the letter is called an “EFTPS Inquiry PIN” and will allow you to make inquiries on EFTPS to see if your tax professional is making the payments on your behalf as they reported to you. It does not allow you to make payments, only inquiries.
Employers Remain Responsible to Ensure Tax Payments Are Made and Returns Are Filed
Even if an employer authorizes a tax professional to make payments and file returns on its behalf, the employer remains responsible for the timely filing of employment tax returns and the timely payment of employment taxes.
Vision Payroll Recommends Monitoring Your Account Regularly
Vision Payroll recommends that taxpayers regularly review payments made through the EFTPS system using their EFTPS Inquiry PIN. By checking the payments no less frequently than monthly, and more often if needed, taxpayers can ensure that their tax payments are being made by their tax professional.
Contact Vision Payroll today.
Contact Vision Payroll if you have further questions on IRS Letter 5144, the provision of an EFTPS Inquiry PIN, a copy of which is provided below.
Text of IRS Letter 5144
Your tax professional enrolled you in the Electronic Federal Tax Payment System (EFTPS) to make tax deposits or payments on your behalf. EFTPS is a free service of the U.S. Department of the Treasury.
The IRS recommends you monitor your EFTPS account to ensure your tax professional is making timely tax payments for you. To view your payment history at EFTPS.gov, you will need to create a password using the following inquiry PIN and enrollment number. At EFTPS.gov, click on “My Profile” then “Need a Password,” and enter the following information.
Your EFTPS Inquiry PIN is:
Your Enrollment Number is:
NOTE: You cannot make a payment using this PIN.
If you already have an active inquiry PIN and password, you may continue to use those to view your payment history and not activate this new enrollment.
You’re responsible for the timely filing of employment tax returns and the timely payment of employment taxes for your employees, even if you’ve authorized a third party to do these for you. If the third party fails to make the federal tax payments, the IRS may assess penalties and interest on your account. You are liable for all taxes, penalties and interest due. The IRS can also hold you personally liable for certain unpaid federal taxes.
Please use your Inquiry PIN regularly to monitor your payment history, if the Inquiry PIN is inactive for a period of 12 consecutive months, it will be terminated. Use your TIN, PIN and Enrollment Number if you have questions about your EFTPS enrollment.
If you need assistance, call customer service 24 hours a day, 7 days a week at 1.800.991.2245. If you are calling from outside the U.S., call1.303.967.5916.
Protect your identity. Never give out your PIN or password.