IRS Tax Payments

In my extensive payroll experience dealing with the IRS, I found three things to be true...
1) They love to change rules, codes, etc.
2) They poorly publish these rules. If your lucky to find a publication of these changes, it's usually poorly explained.
3) They IRS is usually confused about these changes as well. Try calling the IRS and getting a hold of three different people. Ask them the same question and you'll more than likely get three different answers.

The IRS is changing the way companies make their federal tax payments. This is taken from USBank's website.

"Do you drop off your federal tax payments at your bank? If so, you should know that the Internal Revenue Service (IRS) recently announced a new rule that calls for most businesses that now pay their federal taxes with a paper Federal Tax Deposit coupon (IRS Form 8109) to pay electronically as of January 1, 2011. Additionally, banks will no longer be able to accept tax payments. "

Can they make paying your taxes any less convenient? I've helped businesses set up their own EFTPS on the EFTPS website. From filing out the application form to being able to make that first tax payment online, this process can take anywhere from several weeks to several months. Then you have to figure out the EFTPS website and remember all of your passwords and pins.

One benefit of using Total Payroll Solution as your payroll service provider is we set up, make those electronic payments, and maintain your account for you through our system. We can even set those payments to be paid when due, at the earliest possible, or anywhere in between.

Please contact us for a payroll quote or if you have any questions on this new IRS rule. You can contact us through our website or by calling 765-288-PAID (7243). I look forward to talking to you soon.

James

EFTPS EMAIL PHISHING SCAM

There has been a scam going around. You may receive an email that looks something like this:

"Subject: Your EFTPS Tax Payment ID has been rejected.

Report ID: ***. Your Federal Tax Payment ID: *** has been rejected. Return Reason Code R## – The identification number used in the Company Identification Field is not valid. Please, check the information and refer to Code R## to get details about your company payment in transaction contacts section: http://www.eftps*******7.com/contacts"

This is a scam to get you to click their link or call them. They tell you your tax and/or bank information is out of date. They will tell you that you owe outstanding taxes plus penalties. You can either give them your bank information, send them a lump check, or set up a payment plan.

This is not a legit email. The IRS will never initiate contact with a tax payer via email. When you pay your taxes via EFTPS website or batch program, if a payment was returned because of incorrect information or insufficient funds, it would be posted as such. When you call the IRS, they would be able to tell you immediately if there were any payment issues.

Further more, if any of you have ever tried to set up EFTPS through the website or batch program, you would know the information required to get started and all the hoops it seems you must jump through before you could ever make your first payment. Those systems are managed by the IRS. You cannot change your tax or bank information on the website, but only through contacting them via phone. The EFTPS batch program can submit a change request, but it has to be approved first by the IRS. Either way, their program would never allow an incorrect "file" to be submitted.

This is one of the benefits of doing payroll with Total Payroll Solution. We keep tabs on all the tax payments, keep your bank information up to date, and will notify you if there is a problem with the tax payment we submitted for you. Please call us at 765-288-PAID (7243) or contact us through our website, www.TPSpayroll.com, for more information and a price quote.