LAW CHANGE -
Federal Tax Deposit Coupons

Making federal tax deposits (FTD) using paper coupons will not be possible after December 31, 2010. The Treasury Department has imposed regulations that will eliminate the FTD coupon system and generally require depositing federal taxes through the Electronic Federal Tax Payment System (EFTPS)

The regulations will require 10 types of taxes to be deposited electronically:

  1. Corporate income taxes
  2. FICA taxes and withheld income taxes
  3. Federal Unemployment taxes (FUTA)
  4. Estimated taxes on certain trusts
  5. Private foundation excise taxes
  6. Backup withholding and other non-payroll withholding taxes
  7. Excise taxes reported on Form 720
  8. Railroad retirement taxes
  9. Unrelated business income taxes of tax-exempt organizations
  10. Taxes withheld on nonresident aliens and foreign corporations

** Note: Businesses paying a minimal amount of tax (less than $2,500 for a return period) can remit their payments with the related tax return, instead of using EFTPS.

If you have received a notice from the IRS pre-enrolling your business, you will need to complete that enrollment as soon as possible. To enroll, visit the EFTPS website.