What is EFTPS?
EFTPS or Electronic Federal Tax Payment System is literally an “electronic” way of paying taxes for American taxpayers. Whether the taxpayer is an individual or a business entity, taxes may be filed using means such as via phone call to a customer service hotline or through the online channel. This tax-paying system is developed by the US FMS or Financial Management Service and the US IRS or Internal Revenue Service.
EFTPS is considered a quick and efficient way for tax payers to file and/or initiate payment of their taxes. By simply registering through phone or the internet, one individual or business organization may start paying taxes electronically in just a few minutes. Another good thing about the EFTPS is that no fees are collected for enrolment and the services offered by the FMS and IRS. The only fee involved is when a particular taxpayer chooses a third-party financial institution to take care of the tax payment.
Enrolment to the EFTPS only requires the Taxpayer or Employer ID number and the details of the financial institution involved for the actual tax payment. In this case, the taxpayer’s bank account is automatically debited with the corresponding tax amount upon completion of the filing through the EFTPS. The good thing about most financial institutions is that taxpayers are allowed to schedule tax payments and not worry about deadlines.
Besides the ease of payment through financial institutions, paying taxes through the EFTPS also allows for tax form accuracy in terms of filing. The process involves several verification steps which ensure that all encoded data and computations are correct. Filing is also made easy for all user levels with quick guides and simple steps to complete the tax-paying process. Taxpayers also don’t have to worry about website or phone line security as transactions are protected with the strictest level of information security.