What is EFTPS?
EFTPS is the Electronic Federal Tax Payment System developed by the U.S. Department of the Treasurys Internal Revenue Service (IRS) and Financial Management Service (FMS), to enable taxpayers to pay their federal taxes electronically. EFTPS makes paying federal taxes easy and convenient. By enrolling in EFTPS, you can make your payments electronically from the convenience of your office or home, using the Internet, PC software, or telephone. It eliminates the need to complete Federal Tax Deposit (FTD) coupons or vouchers, write a check, and take that check and coupon to a financial institution or the Post Office prior to the deadline. EFTPS is accessible 24 hours a day, 7 days a week. It allows you to make payments with short lead-time and you can even schedule future payments if your tax liability is known in advance. In December, 2005, there were over 5,990,000 payments made using EFTPS. The payments totaled $208,677,685,380. (Click here to return to top of page.
The Electronic Federal Tax Payment System, or EFTPS, provides an electronic system for paying federal taxes. The Internal Revenue Service (IRS) has been replacing the current system of processing taxes in compliance with Congressional mandates. Through EFTPS, the IRS expects to expedite the availability of funds and investment decision-making information to the U.S. Treasury while providing flexible payment options to the business taxpayer. The effort to overhaul the current system began in 1992 with the implementation of the TAXLINK system. TAXLINK operated as a prototype to test various features that could be utilized in EFTPS, the final nationwide system – which began implementation in 1995.
