A:

The Electronic Federal Tax Payment System (EFTPS) is a free tax payment service offered by the U.S. Department of the Treasury to help individual and business taxpayers pay their federal taxes electronically. To use the service, you must first enroll online by entering your Taxpayer Identification Number (your Employer Identification Number if you're enrolling as a business, or your Social Security Number if you're enrolling as an individual), your banking account information, and your name and address as they appear on your IRS tax documents. Approximately one week after you enroll online, you will receive a PIN (Personal Identification Number) in the mail, and you can complete your online registration and begin making payments.

For many people, EFTPS provides an easier method of managing and making tax payments. EFPTS offers many benefits, including:

  • Speed. You can make tax payments in minutes. This can be especially helpful when your tax payment would not be received on time if it had to be mailed. Note: payments must be scheduled at least one calendar day before the tax due date by 8 p.m. ET to reach the Internal Revenue Service on time. On the date you select, the funds will be moved to Treasury from your banking account, and your records will be updated at the IRS.
  • Accuracy. You can check and review your information before sending.
  • Convenience. You can make a payment from anywhere as long as you have an Internet or phone connection, 24 hours a day, seven days a week.
  • Ease of use. Once you are enrolled, a step-by-step process guides you through scheduling payments.
  • Security. Online payments are secure, and you'll have to enter your Taxpayer Identification Number (EIN or SSN), Personal Identification Number, and Internet password each time you log on. If you use the phone system to call in a payment, you will have to enter your Personal Identification Number and Taxpayer Identification Number (EIN or SSN).

Another advantage is that you can schedule payments in advance, which helps ensure you don't miss important deadlines. Business taxpayers can schedule tax payments up to 120 days in advance, and individual taxpayers can schedule payments up to 365 days in advance. Visit www.eftps.gov for more information.

RELATED FAQS
  1. What are the dangers of using the Electronic Federal Tax Payment System (EFTPS)?

    The Electronic Federal Tax Payment System (EFTPS) is a convenient way to file your taxes, but you need to be aware of some ... Read Answer >>
Related Articles
  1. Retirement

    The Purpose of Having a Social Security Number

    When (and why) it is necessary to use the nine-digit number the United States government issues to individuals and when you should avoid it.
  2. Taxes

    Next Season, File Taxes On Your Own

    Master these fundamentals and you'll be doing your own taxes with minimal stress.
  3. Taxes

    What's IRS Form 1040 For?

    Most U.S. taxpayers will be familiar with the 1040. By the end of filling it out, you'll know how much tax you owe, or what your refund is.
  4. Taxes

    Estimated Taxes: Back To Basics

    Will you owe estimated taxes for the year? Here are some rules that apply and tips on avoiding any associated penalties.
  5. Personal Finance

    3 Common Tax Questions Answered

    We clarify some rules that often puzzle taxpayers.
  6. Taxes

    How Getting A Raise Affects Your Taxes

    Many people think they may actually make less overall because they are paying more taxes.
  7. Taxes

    It's Tax Season, Are You Prepared?

    It's tax season again. Use these tips to be prepared to file and protect yourself from cybercrime.
  8. Personal Finance

    The Ultimate Tax-Time Checklist

    Find out what information you need to pull together before filling out your return.
  9. Taxes

    How to File a Tax Extension

    Learn the process you need to follow to get an extra six months to file your tax return.
RELATED TERMS
  1. Electronic Federal Tax Payment System - EFTPS

    A service offered by the U.S. Department of the Treasury that ...
  2. Taxpayer Identification Number - TIN

    A number that is assigned to a tax paying businesses for identification ...
  3. Tax Identification Number - TIN

    As the name implies, this number is a nine-digit number used ...
  4. Tax Liability

    The total amount of tax that an entity is legally obligated to ...
  5. Automatic Bill Payment

    A money transfer scheduled on a predetermined date to pay a recurring ...
  6. IRS Publication 556: Examination Of Returns, Appeal Rights And Claims For Refund

    A document published by the Internal Revenue Service (IRS) that ...
Hot Definitions
  1. Fintech

    Fintech is a portmanteau of financial technology that describes an emerging financial services sector in the 21st century.
  2. Ex-Dividend

    A classification of trading shares when a declared dividend belongs to the seller rather than the buyer. A stock will be ...
  3. Debt Security

    Any debt instrument that can be bought or sold between two parties and has basic terms defined, such as notional amount (amount ...
  4. Taxable Income

    Taxable income is described as gross income or adjusted gross income minus any deductions, exemptions or other adjustments ...
  5. Chartered Financial Analyst - CFA

    A professional designation given by the CFA Institute (formerly AIMR) that measures the competence and integrity of financial ...
  6. Initial Coin Offering (ICO)

    An Initial Coin Offering (ICO) is an unregulated means by which funds are raised for a new cryptocurrency venture.
Trading Center