This is Portia Bingham.
I’m talking with David Alito about the easiest way to pay small business federal taxes.
David, how do you recommend small businesses pay their taxes?
Timely, of course!
But the best method to pay federal taxes is the same as the preferred method to file taxes
and that’s electronically.
How can small businesses pay their taxes electronically?
The easiest way is to enroll in and use EFTPS, the Electronic Federal Tax Payment System.
Why should a business use EFTPS?
EFTPS is secure, fast and accurate. Best of all, it’s free.
It allows you to pay all your federal taxes via the Internet or phone.
It’s really easy to use, also.
It takes just minutes to enroll, and you can do it online.
Ten to 15 days after enrollment, you’ll receive a confirmation package.
Then you can use EFTPS to make all your federal tax payments, including corporate, employment
and excise taxes – any day, any time.
You can even pay your individual taxes electronically.
What advantages are there to using EFTPS?
There are many, but I’ll mention just three:
You receive an acknowledgment from the IRS that your taxes have been paid.
You’ll have 16 months of payment history available to you.
And payments can be scheduled in advance.
You can even cancel or change the date of a payment.
Sounds good.
Any other advice?
Yes. Even if you contract with a payroll or other company to pay your taxes,
I recommend all small businesses enroll in EFTPS, even if you only use the system to
verify payments.
In fact, all new businesses that anticipate Federal Tax Deposit obligations are now automatically
pre-enrolled.
Using EFTPS is a sound business decision.
Where can our viewers find more information about EFTPS?
Type “epay” into the search box on IRS.gov for information on EFTPS and instructions
for enrolling.
You can also call a toll-free number: 800-555-4477.
Thank you, David.
I’ve been talking with David Alito of the IRS.
This is Portia Bingham.
