New online tax-collection for US businesses

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New online tax-collection for US businesses

The US Treasury and the US Internal Revenue Service (IRS) are about to launch a Web-based version of the Electronic Federal Tax Payment System (EFTPS), allowing businesses to pay their federal taxes online.

The IRS said the new system represents another step in its ongoing effort to improve services for taxpayers.

The new system - EFTPS-Online - slated to be unveiled on 7 September, updates the current electronic-payment system that requires users to pay their taxes using special software and a modem to dial in to the treasury's computer system.

EFTPS-Online will allow businesses to enrol in the system, make federal tax payments securely and receive electronic payment histories via the Internet. An IRS spokesman noted that the new system only pertains to paying taxes, not filing returns.

The IRS hopes the new system will encourage more companies to pay taxes electronically.

Businesses in the US and American businesses in other countries - as well as individual taxpayers who are required to make estimated quarterly payments - are eligible to use the system. Taxpayers will be able to schedule future payments via the Web, as well as cancel payments where necessary. Online help and how-to pages with step-by-step instructions will be available.

The IRS said the site would use the strongest available security features and encryption technology to ensure privacy.

According to the IRS, some three and a half million businesses use the current system every week.

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