EFTPS

Using EFTPS to Pay Federal Taxes

The Electron Federal Tax Payment System, or the EFTPS, is free service provided by the U.S. Department of Treasury that allows individuals to pay their federal taxes electronically to the Internal Revenue Service. The service is available 24/7 and allows taxpayers to use it at their convenient.

EFTPS was first started in 1996 and since then over 9.5 million taxpayers have used the system, paying over a $22.8 trillion dollars in over a billion electron payments. EFTPS is used by both individual taxpayers and businesses. The system allows payments for their 1040ES estimated taxes to be made weekly, monthly, or even quarterly.

In order to access EFTPS a user must use a secure internet browser that has 128-bit encryption, making the service secure. In order for an individual or business to log on, they must provide a Taxpayer identification number, an EFTPS PIN, and a password. This enhances the security of EFTPS.

With EFTPS, payments can be made both in two different ways.

• Direct (ACH Debit)

o This electronic payment system allows a taxpayer to access EFTPS in order to directly report tax information. With the taxpayer’s approval, the system can move funds from one account to the Treasury’s account on an indicated date. This date can be scheduled up to120 days in advance.

• Other Financial Institutions (ACH Credit)

o This is used with certain financial institution’s accounts by business taxpayers.

Both forms of payments can be made either by using the EFTPS website or by phones.

Enrolling in EFTPS

In order to use EFTPS you must first enroll. Doing so will require a few pieces of information:

• A taxpayer identification number

o Businesses use a Federal Employer Identification Number

o Individuals use a Social Security Number

• The Taxpayer Enrollment form requires basic information such as a name and address.

• Any EFTPS materials will be mailed to the address on record with the IRS, which should also be the address on any IRS documents or tax returns.

• While an email address is optional, it can be used by the EFTPS for immediate contact. It will not be given out to any other parties.

After supplying and verifying this information, the system will validate the information and the taxpayer will then be shown an Enrollment Confirmation page that has an Enrollment Trace Number that should be kept for personal Records. Printed confirmation materials will then be sent to the primary name and address within 15 days.

All users must accept the Privacy Act of 197 when using EFTPS online. The act requires EFTPS to explain why certain pieces of information are needed and the consequences of not receiving it. Also, under 5 U.S. Code 301 along with the Internal Revenue Code (section 6001, 6011, and 6012), EFTPS can legally ask for this information.