New proposed electronic deposit mandates for most federal business taxes effective January 1, 2011.

Posted in Alerts, Tax Highlights August 2010

Keywords: EFTPS, FUTA, tax, tax planning

Beginning January 1, 2011, the IRS is discontinuing their federal tax deposit coupon program and requiring businesses to pay all federal tax via the Electronic Federal Tax Payment System (EFTPS).

These federal business taxes include all of the following:

  1. Nonpayroll taxes including backup withholding
  2. Taxes withheld on nonresident aliens and foreign corporations
  3. Withheld federal income tax and FICA tax
  4. Unrelated business income tax of tax-exempt organizations
  5. Railroad retirement taxes
  6. Estimated taxes on certain trusts
  7. FUTA tax
  8. Corporate income and estimated taxes
  9. Private foundation excise taxes
  10. Excise taxes reported on Form 720

Businesses not already enrolled in the EFTPS program can do so at https://www.eftps.gov/eftps. Remember to allow at least 10 days from the date of enrollment before you can make your first tax payment.  Taxes will not be permitted to be paid with the tax form (without additional charges of penalties and interest) unless the payment meets the $2,500 “de minims” rules.  All businesses should register as soon as possible to avoid any late payments come January.

If you have any questions, please contact Danielle Timm at (312) 980-2914 or your Blackman Kallick Representative.

 

This publication is part of Blackman Kallick’s marketing of professional services, and is not written tax advice directed at the specific facts and circumstances of any person and/or entity. Contents of this publication are of a general nature, and you should not act on this information without obtaining professional advice from your business advisor that is appropriately tailored to your individual needs and circumstances. This written advice is not intended or written to be used, and cannot be used by any taxpayer, for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code.


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This publication is part of Blackman Kallick’s marketing of professional services, and is not written tax advice directed at the specific facts and circumstances of any person and/or entity. Contents of this publication are of a general nature, and you should not act on this information without obtaining professional advice from your business advisor that is appropriately tailored to your individual needs and circumstances. This written advice is not intended or written to be used, and cannot be used by any taxpayer, for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code.