Choosing a Tax Payment Alternative

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.

 

 

Initiate Your Tax Payments Online or on the Phone

Today U.S. Bank processes tax payments electronically for our customers using U.S. Bank SinglePoint^® ACH, SinglePoint Essentials ACH and EasyTax^SM.

These services allow you to:

• Schedule and pay federal, state and local tax payments
• Define the type of tax payment, amount to be paid and frequency of payments
• Utilize enhanced reporting options

U.S. Bank EasyTax is a convenient and easy way to pay your federal, state and local taxes electronically. You can choose to make your payment online or on a touch-tone phone with any government entity that allows taxes to be paid electronically.

• Save time and money when making tax payments
• Increase accuracy and security
• Fully compliant with all federal standards

SinglePoint and SinglePoint Essentials are both online suites of cash management services that provide all the data and tools you need from one Web site. Services are flexible, expandable and customizable to match your unique financial management needs. If you already use the ACH service in SinglePoint or SinglePoint Essentials, consider using ACH to make your tax payments.

• Create and send electronic payments, including federal, state and local taxes as well as payroll
• Gain tighter control over your money, accounts and data with customizable security settings and a multitude of reporting options
• Enjoy industry-leading ease of use that will increase your efficiency
• Read about the SinglePoint solution
• Learn more about SinglePoint Essentials for Small Business

Government offered solutions are available as well, providing an option for the IRS to pull the funds directly from your account using the Electronic Federal Tax Payment Service (EFTPS).

Get complete EFTPS details.

Frequently Asked Questions (FAQs) on Tax Payment Changes

The following information is designed to answer questions you may have about the new federal tax payment changes and help you begin to make decisions about your tax payment alternatives. If you need assistance or more information, please contact a U.S. Bank representative.

What changes did the U.S. Department of the Treasury make?

The U.S. Department of the Treasury approved an initiative to "Go Green" which requires most businesses using paper FTD/TT&L coupons today to make those payments electronically beginning January 1, 2011. Additionally, tax payments may no longer be made at any financial institution.

Why won't tax payments be accepted at the branch anymore?

With this "Go Green" initiative, the U.S. Department of the Treasury will dramatically decrease the usage of paper coupons and increase the number of electronic transactions. This is expected to save over $400 million and 12 million pounds of paper in the first five years alone. The move from paper to electronic transactions will also increase reliability, safety and security for taxpayers.

What tax payment options are available to me?

• Mail a check to the IRS with your tax return documents (if you meet quarterly tax qualifications, and your quarterly tax liability is less than $2,500).
• U.S. Bank's EasyTax^SM service allows you to make federal, state, and municipality tax payments online or over the phone.
• U.S. Bank's SinglePoint® or SinglePoint Essentials allows you to make federal and state tax payments online.
• IRS' Electronic Federal Tax Payment Service (EFTPS) allows you to make federal tax deposits online or over the phone.

How long can I continue to make payments at the branch?

The U.S. Department of the Treasury has set December 31, 2010, as the last date to accept FTD/TT&L coupons.

What happens if I don't make other arrangements by the final effective date?

Your federal tax payments will not be accepted and considered late, which could result in penalties. To ensure there is no disruption in your ability to make timely FTD/TT&L payments, U.S. Bank can assist you in making other arrangements.

Do these changes apply to consumer taxpayers in addition to business taxpayers?

No, this applies only to business taxes, which are paid with an FTD coupon.

What do I need to get started?

A U.S. Bank representative can assist you in choosing the tax payment alternative that best meets your needs. Depending on the solution you choose, you may need to provide additional information.

Have any banks stopped accepting FTD and TT&L coupons?

Yes, several banks already stopped taking FTDs and TT&Ls. All banks will be required to comply with the Treasury's final rules.

What if I don't have Internet access? Can I make tax payments over the phone?

Yes, U.S. Bank's EasyTax and the EFTPS tax payment services provide the ability for you to make payments over the phone.

Will my EasyTax or SinglePoint tax payments be accepted?

Yes, the EasyTax and SinglePoint ACH and SinglePoint Essentials ACH services comply with the EFTPS and with all state and municipality Electronic Funds Transfer (EFT) systems.

Can I set up an automatic debit from my account to make my tax payment?

The standard tax payment does not have a consistent monthly amount; therefore, there is no automated tax payment set-up available. The convenience of Internet and phone access enables you to initiate tax payments prior to the due date and be assured those tax payments will be made as requested.

How do I know which optional service is right for me?

We encourage you to speak to a branch banker today to explore the options available.