Proposed regulations (NPRM REG-153340-09) eliminate the rules for making federal tax deposits by paper coupons for businesses of any kind that make payments to the IRS. Instead, most taxpayers or taxpaying businesses will use the Electronic Federal Tax Payment System (EFTPS). The paper coupon system will be abandoned. The final regulations could be expected to apply to remittances made no earlier than January 1, 2011.
The proposed rules requiring electronic deposits would apply to federal deposits of: employment taxes, corporate income and corporate estimated taxes, unrelated business income taxes paid by tax-exempt organizations, private foundation excise taxes, as well as taxes withheld on nonresident aliens and foreign corporations, estimated taxes on certain trusts, railroad retirement taxes, non-payroll taxes, FUTA taxes, and excise taxes reported on Form 720, Quarterly Federal Excise Tax Return.
The proposed rules would maintain the existing de minimus rule that allows employers with a deposit liability of less than $2,500 for a return period to remit their employment taxes with their quarterly or annual return.
The proposed regulations remove references to “banking days,” providing that if a federal tax deposit would otherwise be due on a Saturday, Sunday or legal holiday, the taxes will be treated as timely deposited if deposited on the next day that is not a Saturday, Sunday or legal holiday.
The proposed regulations provide that tax deposits can be made online or by telephone, 24 hours a day, seven days a week.
CCH News, Federal Tax Day – Current,I.8IRS Proposes Regulations Generally Eliminating Paper Coupon Federal Tax Deposits (IR-2010-92; NPRM REG-153340-09), (Aug. 20, 2010)
