Electronic Federal Tax Payment System (EFTPS)

What is the Electronic Federal Tax Payment System (EFTPS) ?

The Electronic Federal Tax Payment System (EFTPS) is a tax payment service provided free by the U.S. Department of the Treasury. Individual and business taxpayers can online pay their federal taxes with the help of the Electronic Federal Tax Payment System. You can use EFTPS service to pay any taxes owed to the Internal Revenue Service (IRS) after enrolling and receiving your credentials. Federal employment taxes, quarterly estimated taxes, corporation taxes, and income taxes can all be paid with EFTPS.

With Electronic Federal Tax Payment System you can easily pay your taxes either online or by phone from anywhere, 24/7, 365 days a year. By allowing you to schedule payments in advance and examine your information throughout the process, it also helps to assure correctness and reduce penalties.

To use EFTPS service, you must first register online by providing your name, address, and bank account information as they appear on your IRS documents, your taxpayer identification number (TIN), if you're enrolling as a business, or your Social Security Number (SSN), if you're enrolling as an individual. You will get a PIN (personal identification number) in the mail about a week after you enroll online, which you can use to finish your online registration and start making payments.

Key Facts of Electronic Federal Tax Payment System

  • The U.S. Department of the Treasury offers taxpayers a 24/7 service called the Electronic Federal Tax Payment System that enables them to pay their taxes.
  • Online tax payments (both owed and estimated) are processed securely by the EFTPS, a free tool.
  • The EFTPS enables users to submit tax returns directly to the IRS using their social security number and unique PIN number.
  • Over 12 million groups, including individuals, nonprofits, companies, and other governmental organizations., use EFTPS.
  • Since EFTPS is available 365 days a year, many people find it to be a convenient way to send the IRS their regular tax payments.

How Does the Electronic Federal Tax Payment System Work ?

All taxpayers can use the Electronic Federal Tax Payment System for free to pay their taxes. The EFTPS system makes it simple for both individuals and corporations to pay their federal taxes. You can use EFTPS to pay all of your federal taxes, including anticipated tax payments, instalment agreements, and federal tax deposits (FTDs). You can schedule payments with EFTPS at any time, 24 hours a day, seven days a week. Up to 365 days in advance, you can input payment instructions for both businesses and individuals.

Create an account with the IRS at the EFTPS website before making any payments online. Once you've set up an EFTPS account, you may determine the amounts and due dates for automated withdrawals for your quarterly anticipated taxes. The year is divided into four payment periods for estimated tax purposes. There is a distinct payment deadline for every period. Even if you are entitled to a refund when you file your income tax return, you could still face penalties if you do not pay enough tax by the deadline for each of the payment periods.

Features of EFTPS

According to the IRS, the electronic federal tax payment system has the following features :
  • Scheduling payments up to 365 days in advance.
  • E-mail notifications for payment tracking.
  • Keeping online records of payments.
  • Simple payment modification or cancellation.
  • 15-month payment history is being viewed.

Types of EFTPS Payments

There are two payment modes of EFTPS, ACH Debit (Authorize a transaction yourself) and ACH Credit (Have your Financial Institution initiate your transaction), ACH debits and credits for EFTPS work as follows : 

1) ACH Debits :

By instructing EFTPS to create an ACH debit entry to the taxpayer's bank account and credit the Treasury, the taxpayer starts the tax payment process. At least one day before the tax payment is due, the taxpayer sends EFTPS the necessary information. According to IRS guidelines, EFTPS verifies reported data and gives the taxpayer an acknowledgment number. IRS receives the tax payment information online through EFTPS. EFTPS creates an ACH debit file for the tax payments to settle the following day the day before the tax payment due date. The FedACH system receives the EFTPS ACH debit file automatically. Along with documenting and reporting ACH collections and deposits handled by EFTPS, FRB Atlanta is in charge of settling the payments.

2) ACH Credits :

A minimum of one day before the tax due date, the taxpayer instructs their bank to initiate an ACH credit (crediting the Treasury and debiting their bank account). By 2:15 a.m. ET on the day that taxes are due, the taxpayer's bank transmits the ACH credit file entries to the FRB ACH Operator. The taxpayer information is electronically sent from the FedACH file to the EFTPS. EFTPS authenticates the taxpayer transaction information, gives the transaction a reference number for its own purposes, and reports this number to the IRS. Along with documenting and reporting ACH collections and deposits handled by EFTPS, FRB Atlanta is in charge of settling the payments.

What Payments can be made through EFTPS ?

Electronic federal tax payment system can be used to make many kinds of tax payments, including :
  • Federal payroll taxes, such as FICA and employee federal income tax withholding.
  • Payroll taxes.
  • Corporate income taxes.
  • Federal unemployment taxes.
  • Federal excise taxes.
  • Estimated taxes for both corporations or individuals.
  • Payments on installment agreements. You can make payments on a PPIA by using EFTPS.

EFTPS can be used to pay non-depository payments of federal income taxes, employment taxes and estimated taxes.

How to Enroll in Electronic Federal Tax Payment System (EFTPS) ?

The EFTPS service allows taxpayers to make tax payments either by online or telephone. Visit Electronic Federal Tax Payment System website or call EFTPS Customer Service to request an enrollment form :
  • 1800-555-4477
  • 1877-333-8292 (Federal Agencies)
  • 1800-733-4829 (TDD Hearing-Impaired)

You have two options for enrolling in Electronic Federal Tax Payment System (EFTPS) both are free. 

1) Online :
Visit the official EFTPS site. Step-by-step enrollment is available at this site. Within five to seven business days, your Personal Identification Number (PIN) will arrive in the mail.

2) Phone :
To request an enrollment form by mail, call 1888-725-7879 from 9 am to 6 pm ET, Monday through Friday. After EFTPS receives your completed enrollment form, you will then receive your PIN within seven business days.

Create an online account using the Personal Identification Number (PIN) and a login name and password to begin making or scheduling payments. EFTPS will let you know if there is a problem processing your enrolment for whatever reason.

What Happens after Enrollment ?

You can start scheduling payments as soon as you get your PIN. Follow the instructions to set your Internet password, if you utilize EFTPS.gov. Call 1800-555-3453, if you want to schedule payments over the phone.

Schedule EFTPS Payments

EFTPS allows individuals to schedule payment instructions up to 365 days in advance or 120 days in advance for businesses. Depending on what is most convenient for you, payments can be set weekly, bimonthly, monthly, or quarterly. This is particularly helpful for Form 1040-ES quarterly anticipated tax payments.

How to Make EFTPS Payments ?

Federal tax payments made through EFTPS are simple and convenient. Simply sign into the website, choose "make a payment," and adhere to the detailed on-screen instructions. Make sure your have PIN and EIN/SSN. As you proceed, you will be prompted for any further information required to finish your tax payment.

1) To start EFTPS payments, submit your tax payment information by 8 pm ET at least one day before to your due date at EFTPS.gov or call :
  • 1800-555-3453 (Businesses)
  • 1800-315-4829 (Individuals)

2) You will receive an EFT Acknowledgment Number immediately after submitting your information, which you should preserve for your records. Additionally, EFTPS has an email alert system that informs users of the progress of their payments. At EFTPS.gov, you may check the status and history of payment you've made via EFTPS in the previous 16 months.

Then, on the date you scheduled, EFTPS will debit the bank account you specified. The IRS will receive your tax information, and your records will be automatically updated.

Responsibilities to Avoid Penalties

You are in charge of starting the tax payment instructions. If you don't tell EFTPS to process your payments, they won't be done. To avoid penalties related to Electronic Federal Tax Payment System payments, you are responsible for :
  • Make tax payment through EFTPS by 8 p.m. ET at least one business day prior the due date for your taxes.
  • Record received EFT Acknowledgment Number.
  • Verifying that you have enough money in your account to pay your taxes.
  • You are still responsible for make phone payments by calling 1800-555-3453, if EFTPS.gov is unavailable or down.

How to Contact EFTPS ?

Electronic Federal Tax Payment System call centers are open 24/7, 365 days a year to help you with any of your customer service needs. If more assistance is required, customer service agents can be reached at :
  • 1800-316-6541 (Individuals)
  • 1800-555-4477 (Businesses)

Beware of Fake Sites :

Some websites charge you to submit and transfer money while posing as an IRS e-file site. On IRS.gov, there are only official IRS e-file pages. Other websites are all fake.

Frequently Asked Questions

What is EFTPS used for?
The EFTPS is used to securely pay taxes online via direct debit from a bank account, including taxes that are owed and estimated.

Which taxes are paid through EFTPS?
Users of EFTPS can utilize the online system to pay estimated, corporation, self-employment, excise, and payroll taxes.

Is EFTPS a legitimate system?
Yes, the U.S. Department of the Treasury oversees the EFTPS.

Is Electronic Federal Tax Payment System mandatory?
Although businesses are obligated to pay their federal taxes online, using the EFTPS is not necessary. Checks, money orders, or cash can be sent to the IRS by individuals or small businesses.

Who should use EFTPS?
EFTPS is the best option for people and businesses who want to pay their federal taxes in a quick and secure manner.

What are the differences between EFTPS and E-File? 
EFTPS is used to pay taxes. Tax returns are submitted through e-filing (which might also include making tax payments). Electronic Federal Tax Payment System is part of the e-file system of the IRS. 

How secure is the EFTPS system?
You need your Employer ID or Taxpayer ID number to register, and you also have a PIN number. After that, you create a password to access the system. Your personal information is secure, and only you have access to your account.

What happens, if I use a payroll service?
You must sign up for EFTPS and start the remaining tax payments on your own if you utilize a payroll business to make some but not all of your tax payments. You should still sign up for EFTPS individually even if you do utilize a payroll firm to pay all of your taxes. You can use this to verify that payments are being made on your behalf. Additionally, it gives you flexibility in case you ever need to switch payroll providers.

Can EFTPS be paid with credit card?
The system's security, dependability, and customer support contribute to that trust. EFTPS provides more options than ever for paying taxes. You can pay your taxes using a wire transfer from your bank, a credit or debit card (Visa, MasterCard, or Discover), an ACH debit (direct deposit to your bank account), or both.

What is the difference between EFTPS and Direct Pay?
The main distinction between EFTPS and Direct Pay, the IRS's other electronic payment option, is pretty clear. EFTPS is a method for paying federal taxes that is available to both people and business owners, whereas Direct Pay is exclusively available to individuals. Additionally, unlike Direct Pay, which has a $10 million restriction, EFTPS has no cap on the amount of money that can be transmitted.

Does EFTPS expire?
It takes 13 months for the Internet Password for EFTPS to expire. This indicates that an upgrade is required every 13 months. The password should be between 12 and 30 characters long.

How do I update EFTPS?
Visit the EFTPS webpage. Choose Login from the home page. To log in, provide your current internet password, PIN, and tax payer identification number (TIN). Your internet password should be updated to comply with the new security standards.

Should employers open an EFTPS account?
For the following reasons, employers may wish to think about setting up an EFTPS account:
  • To make guarantee they don't miss deadlines, they can plan payments in advance.
  • Payroll service providers typically use EFTPS when sending payments on a client's behalf.
  • Three-factor authentication is a security feature of EFTPS.
  • Corporations must electronically deposit their federal taxes.

What services does EFTPS provide?
EFTPS enables people and companies to safely pay their taxes and anticipated tax obligations online using their bank accounts. Only after signing up for the system can payments be made, and signing up can take a week or more. Payments must be planned at least one day in advance and no more than three years. There are different mechanisms for same-day payments.