Bye, Bye Paper Tax Coupons

  • Do you still file your  taxes using paper coupons.  If so, you may need to convert over to the IRS EFTPS electronic payment system.  The IRS has published a proposed regulation (REG 153340-09), that would eliminate the rules for making deposits via paper coupon.  After Dec. 31, 2010 the paper coupon system, maintained by the Department of Treasury, will no longer be maintained.

    The Electronic Federal Tax Payment System (EFTPS)  was launched in 1996.  It is used as a vehicle to make tax payments to the federal government.  It is available to individuals, businesses, payroll companies, federal agencies, and tax professionals.  Most companies use it as the preferred method for making payroll tax deposits, however many small businesses are still using paper coupons to make payroll tax deposits.

    If you are a small business owner and you are still using paper coupons, you will want to check out the EFTPS web site to learn more about the EFTPS system and how to apply for a pin number before the December 31, 2010 deadline.