EFTPS - required?

[SheilaD]

The letter says that they are already enrolled in EFTPS (the clients call and ask why I have done this to them) and explain how to deposit their taxes electronically. Some of my less computer literate clients - already traumatized by electronic 5500 requirements want to continue to use their coupon books and make their one deposit (or two) per year in that manner. One of my clients called for a new 8109 coupon book (they ran out) and was told they would not need it because they would have to deposit electronically next year.

Are all deposits required to be electronically deposited by 2011? I hadn't heard anything about this. Perhaps the IRS is trying to encourage electronic filing ...but I wish they would warn us. Clients are calling left right and center.

Anyone else having this experience? Thanks

[A Shot in the Dark]

SheilaD:

The letter states "Welecome to the EFTPS". It continues "We (the IRS is We) have enrolled you in EFTPS". And it proceeds to explain the program and includes the PIN number to use the EFTPS System.

Included with the letter is a brochure with instructions on how to activate the program.

Also included in the packet is a very "catchy looking" Department of Trasury Memo that states the following:

"The government has recently issued a proposed regulation that provides the Federal Tax Deposit coupons will no longer be accepted as of January 1, 2011." "If this regulatory change takes effect as proposed, your business may be required to make deposits electornically, and may be charged a 10% penalty for each non electronic deposit."

There is "Additonal Information" noted on the memo.

Note the line: "If this regulatory change takes effect".

It has not taken effect just yet, and I chalked this up to a good marketing piece.

[CJS07]

Does anyone know if this proposal became law on 1/1/11 as planned?

Have any of your clients used the EFTPS system yet for federal tax withholding from Plan distributions?

I have a client who has money at Ameritrade. Participant taking taxable distribution. Should client have Ameritrade deposit federal withholding to checking account in the name of the Plan and then client submits payment to EFTPS? This client of course has one distribution every 5 years or so - such a pain! Thanks for any input!

[Doghouse]

I believe that TD 9507, published in the Federal Register on 12/7/2010, finalized those regulations.