IRS WILL ELIMINATE USE OF FEDERAL TAX DEPOSIT COUPONS AFTER 2010

IRS will eliminate use of federal tax deposit coupons after 2010

Thus, firms will have to wire deposits of all taxes to IRS…payroll taxes, corporate income taxes and estimates, excise taxes and the like. Currently, employers can use paper coupons if their annual deposits don’t exceed $200,000.

Only very small firms will be exempted from depositing electronically… employers with $2,500 or less in quarterly employment taxes that pay their liability when filing their returns. All other coupon users must switch to making deposits by wire using Treasury’s Electronic Federal Tax Payment System. For information on enrolling for electronic deposits, go to www.eftps.gov or call 800-555-4477