The government has recently issued a proposed regulation that provides the Federal Tax Deposit coupons will no longer be accepted as of January 1, 2011.  Businesses may receive a letter from the IRS assigning a PIN and providing instructions for activating an account.

If this regulatory change takes effect as proposed, businesses may be required to make deposits electronically, and may be charged a 10% penalty for each non-electronic deposit.

Some very small businesses - typically, those with a federal tax liability of less than $2,500 per quarter would still have the option of mailing a check with their quarterly or annual returns.

EFTPS is pre-enrolling businesses in advance of the proposed January 1, 2011 changeover date.

For more information about Federal Tax Deposits, please call Sheryl Sheshull at our office, 513-248-9210.