Electronic Federal Tax Payment System (EFTPS)
Summary Definition: A free, secure system for individuals and businesses to schedule and make federal tax payments to the Internal Revenue Service (IRS) online or by phone.
What is EFTPS?
The Electronic Federal Tax Payment System (EFTPS) is a secure, free service provided by the Department of Treasury that allows individuals, businesses, and other organizations to submit federal tax payments to the Internal Revenue Service (IRS) virtually. Accessible 24 hours a day, seven days a week, the system simplifies the tax-paying process by allowing users to pay taxes online whenever and wherever they need.
EFTPS lets taxpayers pay federal taxes directly from their bank accounts, including self-employment, estimated, and payroll taxes. Users can schedule payments up to a year in advance and have the flexibility to modify or cancel an EFTPS IRS payment if needed.
Users can track each payment, view up to 15 months of IRS electronic payment history, and receive email notifications for added recordkeeping and security.
Key Takeaways
- The Electronic Federal Tax Payment System (EFTPS) allows users to pay federal taxes online or by phone.
- EFTPS differs from IRS Direct Pay in that it processes payments for both individuals and businesses and provides more robust features, such as a payment history record and a higher limit on transaction amounts.
- To make an Internal Revenue Service EFTPS payment, users must enroll on the service’s website and set up their account’s username, password, etc., with the unique PIN that arrives in their enrollment confirmation letter.
How Does an Electronic Federal Tax Payment Work?
The IRS EFTPS process uses automated clearing house (ACH) transactions to credit and debit amounts between users and the IRS:
| ACH Debit | ACH Credit |
| Taxpayers inform their bank that the EFTPS can debit their account and credit the amount to the government. | Taxpayers instruct their bank to credit an amount from their account to the EFTPS. The bank then submits the payment file to the FedACH system by the processing deadline. |
After the EFTPS receives the amount, it verifies the details, assigns a reference number, and reports the transaction to the IRS. The Federal Reserve Bank of Atlanta settles the transaction and records the funds.
EFTPS vs. Direct Pay
FTPS and Direct Pay are electronic federal tax payment systems that cater to different needs. A primary distinction is that businesses must use EFTPS, while individuals paying income taxes can use either EFTPS or Direct Pay. Moreover, Direct Pay is specifically tailored for only income-based taxes, while EFTPS can process a variety of types.
Furthermore, Direct Pay’s features are more limited than those of EFTPS. When used, for instance, to pay income tax online, Direct Pay doesn’t keep a historical record of an individual’s prior payments. It also only allows individuals to schedule a federal electronic tax payment up to 30 days in advance and limits each electronic tax payment to $10 million or less.
How to Pay Federal Taxes Online with EFTPS
Before making an EFTPS IRS payment, users must first register an account by enrolling on the EFTPS website. This will require a few pieces of information, including the user’s:
- name or the business name
- contact information (e.g., address, phone number, etc.)
- bank account and routing numbers (making an EFTPS payment through a credit card isn’t allowed)
- taxpayer identification number (TIN) or employer identification number (EIN)
When finished, users will receive an EFTPS letter approximately one week later confirming their enrollment with a unique PIN they can use to set up their account’s username, password, etc. Users managing multiple businesses must repeat the enrollment process for each organization’s EIN.
With an account set up, users can log in and use the site’s instructions to schedule payments of up to $50 million. Scheduled payments can be edited or canceled up to two days before they’re processed, and the site will email confirmation numbers for each completed transaction. Even if the site becomes unavailable, users can call the EFTPS voice response service (1-800-555-3453) to complete a payment.
Questions or concerns can be submitted through the site or by calling the EFTPS phone number (1-800-555-4477) to speak with a customer service agent
Learn More: 2025 Payroll Taxes, Forms, and Due Dates
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