Vision Payroll

December 10, 2010

Question of the Week: Why Did I Receive a Notice About Federal Tax Deposit Coupons?

Filed under: News — Tags: , , , , — Vision @ 11:47 am
Why Did I Receive a Notice About Federal Tax Deposit Coupons?
Why Did I Receive a Notice About Federal Tax Deposit Coupons?
This week’s question comes from Carl, a corporate controller. I received a notice from the Internal Revenue Service (IRS) about Federal Tax Deposit coupons titled, You can no longer make required deposits using Form 8109/8109-B. Why did I receive a notice about Federal Tax Deposit coupons? Answer: As previously announced, the IRS will discontinue accepting paper coupons for Federal Tax Deposits after December 31, 2010.

Updated Guidance Issued by the IRS

Updated guidance was announced in TD 9507 (REG153340-09), published in the Federal Register on December 7, 2010. The Explanation of Provision and Summary of Comments was broken into several sub-topics.

  1. Burden on Small Businesses
  2. Alternative Payment Methods
  3. Raising the De Minimis Amounts
  4. Security and Distrust of Electronic Payment Systems
  5. EFTPS Registration
  6. Foreign Taxpayers
  7. One-Day Rule
  8. Delay the January 1, 2011 Effective Date
  9. Business Days and Legal Holidays
  10. Other Differences From the Proposed Regulations

Taxpayers Must Make Most Payments Electronically

Most taxpayers must make all payments electronically. Small employers (those whose tax liability on the return is less than $2,500) have three options to make payments:

  • Remit employment taxes with their quarterly or annual tax return,
  • Voluntarily make deposits by EFT, or
  • Use other methods of payment as provided by the instructions relating to the return.

Vision Payroll Makes Federal Tax Payments Using EFTPS

Vision Payroll makes all federal payroll tax deposits and payments using EFTPS. Additional payments for taxes such as federal income taxes and federal excise taxes may be made for clients by Vision Payroll. Previous registration is required so contact Vision Payroll today to get started.

August 21, 2010

IRS Issues Proposed Regulations to Discontinue Paper Coupons

Filed under: News — Tags: , , , — Vision @ 11:09 am
EFTPS Will Soon Be Required for Most Payroll Tax Payments
In IR-2010-092, the Internal Revenue Service (IRS) recently announced proposed regulations (REG 153340-09) that eliminate the ability for taxpayers to deposit taxes using paper coupons. Additionally, businesses with a quarterly Federal tax liability of more than $2,500 would be required to pay taxes electronically.

Paper Coupons Eliminated Starting in 2011

Since the Treasury Department will no longer maintain the paper coupon system after December 31, 2010, the proposed regulations eliminate rules related to that system. Taxpayers who have a tax liability of less than $2,500 in a quarter would be able to pay the amount with the return. All other taxpayers will be required to pay electronically.

Contact Vision Payroll Now!

As an authorized batch filer using the EFTPS system, Vision Payroll can transmit electronic tax payments in batches for multiple taxpayers. This is the most efficient method to transmit payments to the IRS. Electronic payments have a significantly lower error rate than paper coupons and therefore reduce correspondence from the IRS that attempts to resolve those errors.

Contact Vision Payroll today to get started.

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