EFTPS letter

[thomtax]

Client has received letter from EFTPS advising him that "You were recently pre-enrolled in the EFTPS to make your federal tax payments online or by phone" It then telle him that he has not activated his enrollment yet and to send bank info etc.

Client does not want to do this. He wants to continue to make monthly deposits at bank. Monthly liability runs from $1200 to $2000 per month. This is LLC taxed as partnership.

Is the electronic drafting from account now being required? Or can he contine "as is" and ignore the reminders?

Thanks for all info.

[Bees Knees]

According to TTB, page 23-4, EFTPS is required for 2007 if:
1. Total deposits in 2005 were more than $200,000 or
2. Employer was required to use EFTPS in 2006.

According to the 2005 version of TTB, page 23-4, EFTPS was required for 2006 if:
1. Total deposits in 2004 were more than $200,000 or
2. Employer was required to use EFTPS in 2005.

Bottom line, at one point the taxpayer had to have more than $200,000 in total deposits for the year before EFTPS is a requirement. I would call IRS if you don't want to use EFTPS. However, re-consider using EFTPS as it is a whole lot easier than filling out a deposit coupon, writing out a check for the amount, and driving to the bank to make the deposit.

[thomtax]

Thanks Bees

I must admit to failing to check the TTB on this, erroneously assuming that it would be outside it's coverage.

I did check TTB concerning the engagement letter in my other posted inquiry and found nothing. I usually turn back and recheck things about a block before arriving at my destination, so I'll take "20 lashes with a wet noodle". :-)

Thanks again.

[ChEAr$]

doesn't matter

what the actual requirements are, all new organizations (the ones I've seen at least) are
getting this automatic enrollment letter. IRS is trying to "encourage" (force?) the issue.

Unless absolutely required, "just say no."

Now the real problem will be to continue to obtain preprinted blue coupons.
I've one client who has repeatedly requested (three times) and blue coupons
never arrive. Result is I have to request blank forms and laboriously print his
information thereon.

[Bees Knees]

A variety of fill-in-print engagement letters is going to be one of the new Extra Features on the 2007 WebCD. Something you won't find in TTB print versions.

[geekgirldany]

I have a customer that just incorporated his business and got one of EFTPS letters automatically. I assume they are just issuing these for new businesses as stated before.

[Gretel]

Not only do they issue these letter they actually enroll every new business. But it is still the choice of the business owner if they want to do this.

[DaveO]

You have to call to get the 8109 Books

They give you the hard sell for the electronic payments again when you do. I don't think it's right that they are forcing bsuinesses into electronic payments.

"I do not care to make governemnt more efficient, because I aim to reduce its size"
Barry Goldwater

[oceanlovin'ea]

Most use EFTPS

Almost all of my bookkeeping accounts are in the EFTPS program. I had one hold out and this year he decided it was better too.

You can set it up to post on any day you want it to so it is very convenient.

Only problem I have run into was that one client changed bank account information. When you do that you get a new PIN. I didn't realize that and used old PIN and it can back.

Linda F

[thomtax]

I appreciate the answers and "experienced" advice from each of you.

LT