Reminder: electronic payment deadline approaches.Companies reporting annual employment tax obligations of more than $50,000 in 1995 must, by July 1, begin using the Internal Revenue Service's electronic federal tax payment system (EFTPS EFTPS Electronic Federal Tax Payment System EFTPS Electronic Funds Transfer Payment System ) to make their tax deposits. Karen Taylor Karen Taylor is an English comedienne from Barrow-in-Furness, Cumbria. She is a former finalist in the prestigious Daily Telegraph Open Mic Award[1] and has fronted her own sketch show on BBC Three, entitled Touch Me, I'm Karen Taylor. of the IRS An abbreviation for the Internal Revenue Service, a federal agency charged with the responsibility of administering and enforcing internal revenue laws. Submission Processing Division said companies must be enrolled in EFTPS to use the system. "It is important that companies enroll as early as possible because it could take as long as 8 to 10 weeks to process enrollment forms," said Taylor. She also said already enrolled companies should not wait until July 1 to start using EFTPS. "We are encouraging taxpayers to start early to make sure there are no problems and they are comfortable with their payment choices." Early use also allows companies to change payment choices or certain business practices. For example, companies that have chosen the Automatic Clearing House (ACH (Automated Clearing House) A system of the U.S. Federal Reserve Bank that provides electronic funds transfer (EFT) between banks. It is used for all kinds of fund transfer transactions, including direct deposit of paychecks and monthly debits for routine payments to ) debit A monetary amount that is subtracted from an account balance. A debit from one account is a credit to another. See credit. option on the enrollment form automatically will be enrolled in the ACH credit option; however, companies that enrolled in the ACH credit option must check with their financial institutions to make sure they can initiate ACH credits and are eligible to use the ACH system. Taylor also said it was important that companies check the confirmation package they receive from the IRS to identify and correct any discrepancies. Other EFTPS start-up facts include the following: * Companies can file using a phone or a personal computer. * Companies must initiate payments at least one day before the tax-due date. * All companies are automatically enrolled for same-day filing. * All companies that do not use EFTPS after July 1 will incur To become subject to and liable for; to have liabilities imposed by act or operation of law. Expenses are incurred, for example, when the legal obligation to pay them arises. An individual incurs a liability when a money judgment is rendered against him or her by a court. a 10% penalty for each nonelectronic deposit. For more information on EFTPS filing, contact Lee Lawrence in the IRS Cash Management Office at 202-283-0990. |
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