When it comes to paying taxes, one of the popular choices is to use the Electronic Federal Tax Payment System (EFTPS). It has features that are unique compared to the other payment alternatives. But is it the right option for you?
What is EFTPS?
EFTPS or the Electronic Federal Tax Payment System is a free and secure online service offered by the Department of Treasury allowing individuals and businesses to pay federal taxes electronically. It also allows taxpayers to schedule payments up to 365 days in advance, track payment history, and immediately confirm a successful tax payment.
Does it Require a Registration?
First time EFTPS users are required to enroll online. You will need to provide your tax identification number, banking account and routing number, and your address that appears in your tax documents. Expect to receive a physical mail within seven (7) business days after your online enrollment to receive your PIN.
Unique Features
- Make payments for all federal taxes. One of the key features of EFTPS is that both individuals and businesses can use it to pay all kinds of federal taxes, including business taxes.
- Largest limit of tax payment online. EFTPS allows up to five (5) payments per day up to less than $50 million per payment.
- Pay taxes even during a Web Downtime using their Automated Phone Payment Feature. Payments can be made anytime, anywhere even during a server maintenance period since taxpayers have 24/7 access to its free automated voice response system. This is an essential feature especially during a critical tax deadline.
- Live Telephone Customer Assistance 24/7. Live operators are available 24/7 to help with your online tax payments.
EFTPS sure has a lot of useful features. It even helps you track your payment by showing your history up to 16 months back. However, its records are limited to payments made using EFTPS only. If you want to review the rest of your tax payments, you will want to enroll in an IRS Online Account which shows all your payment history up to 24 months old.
EFTPS is ideal for those who need to make frequent and large federal tax payments. You can pay all kinds of federal taxes, including business taxes. However, you may want to plan your payment using EFTPS since its initial registration can take up to one week. For immediate tax payment, you may opt to use the IRS Direct Pay.
Assess your tax requirements to determine if EFTPS will be the best fit for your needs.
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