IRS Aims to Boost Electronic Transactions

The IRS has just issued proposed regulations to significantly increase the number of electronic transactions between taxpayers and the federal government.

The proposed regulations (REG 153340-09) would eliminate the rules for making federal tax deposits by paper coupon because the paper coupon system will no longer be maintained by the Treasury Department after Dec. 31, 2010.

The proposed regulations maintain existing rules for depositing federal taxes through the Electronic Federal Tax Payment System.

The IRS says that using EFTPS to make federal tax deposits provides substantial benefits to both taxpayers and the government, i.e., EFTPS users can make tax payments 24 hours a day, seven days a week from home or the office.

The system also allows taxpayers to schedule dates to make payments even when they are out of town or on vacation when a payment is due.

Information on EFTPS, including how to enroll, can be found at www.eftps.gov or by calling EFTPS Customer Service at (800) 555-4477.