Friday, June 10, 2011

Amended Return Payments May Be Made by EFTPS

On the June 2 payroll industry conference call, Annette Dean, IRS Tax Analyst, explained how to make amended return payments for an old tax period using the Electronic Federal Tax Payment System (EFTPS). When employers are asked to enter the type of payment, they should not select the option on the screen that says “Federal Tax Deposit.” Instead, they should select another option (e.g., “Payment due with a return” or “Payment due on an IRS notice”). The employer will then be able to enter the tax period that the payment should be applied to. If the employer selects “Federal Tax Deposit,” the payment will be applied to the current tax period if IRS records don't currently indicate that the employer has a balance due in a previous tax period.

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