Posted on December 17, 2010

Discontinuing Federal Tax Deposit Coupons

Due to a regulatory change, Federal Tax Deposit coupons will no longer be accepted. All Federal Tax Deposits must be made electronically, otherwise you will incur up to a 10% penalty for each non-electronic deposit. The IRS has provided steps to take regarding the change.

What you need to do:
* Check with your financial institution to find out its cut-off date for accepting Federal Tax Deposit coupons
* The IRS has provided an easy and convenient way to make electronic deposits using EFTPS (Electronic Federal Tax Payment System) available through the US Department of Treasury

For more information about electronic payment methods, visit www.irs.gov/epay or call 1-800-830-5215.