EFTPS: 7 FAQs Answered!

EFTPS or Electronic Federal Tax Payment System offers an easy way for federal tax payments electronically 24 hours a day and 7 days a week. EFTPS allows payments by transfer of funds the taxpayer’s bank account to the federal government’s account. The good point is that IRS records for the taxpayer is automatically updated. This post is a collection of most frequently asked questions on EFTPS. If you are having less time, just watch the video on EFTPS below !

Video Summary

1.What is EFTPS?

The EFTPS or Electronic Federal Tax Payment System is a free service by the U.S. Department of the Treasury that allows taxpayers to make tax payments either by using its Voice Response System or online website.

2.Who can use Electronic Federal Tax Payment System ?

The free and convenient service of electronic payments through EFTPS can be used by almost all individuals, federal agencies, businesses, tax professionals, and payroll services.

3.Is it Safe?

IRS website on eftps , clears the air around this question by saying as under :

EFTPS® is a secure government web site that allows users to make federal tax payments electronically. Every user must have a secure Internet browser with 128-bit encryption in order to access the site. To log on to the system, an enrolled user must be authenticated with three pieces of unique information: Taxpayer Identification Number (EIN or SSN), EFTPS® Personal Identification Number (PIN) and an Internet Password. The combination of these three pieces of identification adds to the security of the site and the privacy of taxpayer data.

4.How do I pay Electronic Federal Tax Payment System ?

First, you need to enroll in Electronic Federal Tax Payment System. For this or for more information on enrollment, visit its website or call its Customer Service to request an enrollment form:

• 1-800-555-4477 
• 1-877-333-8292 (Federal Agencies)
• 1-800-733-4829 (TDD Hearing-Impaired)
• 1-800-244-4829 (Español)

Once you register, you need to authorize transactions by providing your business checking account information. You can also validate or make the authorization by phone.

5.What is the difference between IRS direct pay and EFTPS?

Good question. Yes, a taxpayer can pay taxes using Direct Pay which is also a free online method of payment Like  Electronic Federal Tax Payment System, Direct Pay is a free online payment system. Click image for FAQs on IRS Direct Pay. And also like  Electronic Federal Tax Payment System, Direct Pay will take money from your designated checking or savings account to cover your tax bill. But unlike EFTPS, Direct Pay is available without having to pre-register.

6. What is an Eftps PIN number?

When you successfully enrolled in Electronic Federal Tax Payment System, you will be given the 4-digit  PIN and the password. Both credentials are required when e-paying your 940 and 941/944.

7. How do I cancel a payment on Electronic Federal Tax Payment System ?

You can cancel the payments if the payment is more than two business days before the payment is scheduled to be made. For this go to the payment website, log in and then click on Payments from the home page. Then, click Cancel a Tax Payment on the left menu, and follow the onscreen instructions.

Bonus Question

Which Taxes Can I Pay with EFTPS? 

Electronic Federal Tax Payment System can be used to make the following types of tax payments

1. Payroll taxes to Federal Govt (IRS) . In fact all kinds of taxes like FICA tax or withholding taxes or tax demands due to failure to pay or file penalty.
2. Federal unemployment taxes
3. Corporate income taxes 
4. Estimated taxes for individuals , corporations .
5. Federal excise taxes (Form 720)
6. If you had outstanding taxes , and you applied for installment agreements to IRS. You can pay those installments as well if IRS allowed you such installments of tax dues.

You can also use EFTPS to make non-depository payments of federal income taxes, estimated taxes, and employment taxes.³