What is EFTPS?
EFTPS stands for the Electronic Federal Tax Payment System, which is a website operated by the Internal Revenue Service (IRS) and is an online tax payment system in the United States. The website allows both businesses and individuals to make tax payments directly from their bank accounts using a secure payment system. Learn more about EFTPS here.
Services Available with EFTPS
Several services are available on the Electronic Federal Tax Payment System for individuals and business in the United States.
- Free for all users
- Schedule payments
- Payment instructions up to 1 year in advance
- Direct deposit from a bank account
- Available 24 hours per day, 7 days per week
How to Use the EFTPS Website
Below is a list of important instructions and things you should be aware of when using the EFTPS service:
- Create an account by completing the enrolment process.
- Enrolling can take up to a week (information must be sent by physical mail and requires banking information).
- Final confirmation and enrollment require entering a PIN that arrives in the mail.
- For payments to be received by the IRS on time, EFTPS payments must be scheduled by 8:00 p.m. EST at least one calendar day before the tax due date.
- On the selected payment date, the funds will be deposited to the US Treasury directly from your bank account and the IRS will be notified.
- The EFTPS website functions on Mozilla Firefox (Windows) and Microsoft Internet Explorer (Windows).
Security and Privacy Information
It is important to note that, according to the EFTPS website, the IRS doesn’t gain access to the users’ EFTPS accounts; the system can’t be used to confiscate assets if they believe taxes are owed. The system does not allow the government to reach into your account and take your personal or business funds.
It is also important to note that tax payments are still due regardless of whether the website is out of service or unavailable for any reason. In the event the website is not functioning, you can make a tax payment via telephone by calling 1-800-555-3453 and following the voice prompts to make a payment.
EFTPS Identity Verification
The IRS online payment system is very secure, and in order to confirm your identity, it requires three different pieces of information such as:
- Social security number (SSN) or employer identification number (EIN)
- A personal identification number (PIN)
- An Internet password or PIN
What Option to Select for Tax Period
The tax period you must select is the year and/or quarter of your tax obligation to the IRS. For example, Forms 720 and 941 require the tax period to be either in Q1, Q2, Q3 or Q4 of the calendar year. Therefore, a payment due in May would select Q2 because May is part of the second quarter. After entering the quarter, you then need to enter a four-digit number for the year (i.e., 2018). If the form you are completing doesn’t require a month or quarter, just enter the four-digit year number.
How to Cancel a Payment
Note, in order to cancel a payment, it must be at least two or more business days before the scheduled date of the payment. If it is two or more days away, then click on “Payments” and then click “Cancel a Tax Payment” and follow the instructions on the page.
How much do I owe and when is my payment due?
EFTPS® is a tax payment service. You’ll need to already know the amount, tax form, and date when you schedule a payment here. To calculate a payment or due date or determine the appropriate tax form, please visit the IRS website or a tax professional.
Risks of using the EFTPS Website
One of the risks of using the online service is being subjected to scams where fake emails are sent to EFTPS users requesting them to log in and update their personal tax information. The scams then trick users into installing malware (a virus) on their computer, which could allow the hackers to access bank accounts.
It’s important to note that the IRS will NOT email or send any form of electronic messages to users of EFTPS requesting them to update or change personal or financial information. They will never send you an email asking for passwords or PINs or credit card or bank account information. If users receive an email from a someone claiming to be the IRS or EFTPS, they should not download the attachment and should forward the e-mail to [email protected]
Tax Advice Notice
This EFTPS guide was created for informational purposes only and should not be relied upon in any way for tax or financial advice. Always consult a professional advisor before making any financial or tax decisions.
Thank you for reading this guide on how to use the EFTPS website to pay your taxes online. CFI is the official provider of the Financial Modeling & Valuation Analyst (FMVA)TMcertification. To advance your career as a financial analyst, these resources will be very useful: