Sunday, January 16, 2011

Federal Payment Changes for Tax Exempt Organizations

No one wants to owe the IRS but if you do some recent changes have been made regarding payments to the IRS for tax exempt organizations. Previously a tax-exempt organization could send payments by making deposits either electronically, using the Electronic Federal Tax Payment System (EFTPS), or by taking its deposit and the Federal Tax Deposit Coupon Form 8109B to an authorized financial institution or a Federal Reserve bank serving your area Blank coupons can be obtained at your local IRS office. However, original coupons must be used, photocopies will not be accepted.

If you owe the IRS and previously made payments using the Federal Tax Deposit Coupon (8109), effective January 1, 2011 you can only use the EFTPS to make your federal tax deposit payments. Using this system allow tax exempt organizations to make payments 24 hours a day from anywhere, by phone or online. Using the system allows reduced payment errors and reduced penalties incurred due to errors. Payers can schedule payments up to 120 days in advance of the payment date. Payments must be scheduled by 8:00pm EST before the due date to receive same day credit.

The EFTPS allow payment via the website or the voice response system. Your bank can create an ACH credit payment on your behalf but you may be charged a fee by your bank. Your bank may make a same day wire payment for you in special circumstances but you may be charged a fee by your bank. Always check the IRS website to get the latest information on taxes, tax filing and tax preparation procedures.

1 comment:

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The Credit Repair and Debt Reducer Expert's Blog explains regarding all about the Federal Payment Changes for Tax Exempt Organizations.