Being able to pay all your federal taxes on a secure website makes tax remittance easier. Find out what the EFTPS is and how you can enroll and start using it. Read on to learn how to pay your taxes with estimated tax payments.
Federal tax payments are a necessary part of business but sometimes it can be inconvenient. EFTPS makes online payments possible for individuals and small business owners.
EFTPS is short for Electronic Federal Tax Payment System and is a free service offered by the IRS that allows you to pay federal taxes online or over the phone. Convenience is one of the biggest advantages it has and security is ensured through a password, PIN (Personal Identification Number), and TIN (Taxpayer Identification Number).
These are the steps you must take:
1. Enroll with the Electronic Federal Tax Payment System (EFTPS)
Go to the EFTPS website and click on "enroll." Follow the prompts and enter your Social Security number or employer identification number (EIN). If you're an individual, you can use the EFTPS system, though it may be easier for you to use the IRS's Direct Pay website. If you're filing estimated taxes for a business, however, you must use the EFTPS system.
If you're self-employed or a sole proprietor and are personally responsible for your business taxes, enroll as an individual, but you should enroll as a business if your business has a separate EIN that you use to file taxes on behalf of the business.
2. Receive your PIN in the mail
Once you request enrollment, the IRS will verify your identity and send you a unique PIN to the address you provided that should arrive within 5 to 7 business days. If you don't receive your PIN after a week, call 1-800-555-4477 and can give the agent your Social Security number or EIN. This way they will provide you with your PIN. It is important that you keep this PIN in a safe place for future reference.
3. Fill in your enrollment on the EFTPS website.
After you receive your PIN, you'll be able to go back to the EFTPS website and log in. Once you're enrolled, you can set up your account and create your profile using the same personal information you use when you file your taxes.
4. Calculate your tax payment
The EFTPS is only a payment system and does not have any information on how much tax you owe. To calculate your estimated tax payments, you can use IRS Form 1040-ES.
5. Schedule your payments
Once enrolled, you give instructions to transfer funds from your bank account to the EFTPS.