The new program will reduce dependency on paper in several ways, one of which impacts Form 8109.
Electronic Federal Tax Payment System Businesses currently permitted to use Form 8109 federal tax deposit coupons for deposit of payroll tax liabilities will be required to use the IRS Electronic Federal Tax Payment System (EFTPS) beginning in 2011.
The only exception will be very small employers whose tax liability is less than $2,500 quarterly.
These employers will be able to deposit taxes with a timely filed Form 941.
Along with the obvious cost-saving benefits of this program, there are additional security and
convenience features associated with electronic payment options. According to IRS research, businesses using EFTPS for tax deposits are 31 times less likely to make a deposit error, and this change is expected to save an estimated $65 million in the first five years.
Businesses that make federal tax deposits using a paper 8109 coupon should be aware that this form of payment will cease beginning in 2011. Failure to make payments using EFTPS could result in a 10% failure-to-deposit penalty.
Details about EFTPS enrollment can be obtained at www.eftps.gov or by calling 1-800-555-4477 or calling the Paul Paterakis Power Team at 847-366-3455 begin_of_the_skype_highlighting 847-366-3455 end_of_the_skype_highlighting today!