Your Guide to Pay Federal Taxes Electronically 

Guide to Pay Federal Taxes Electronically

While most of us eagerly anticipate that sweet tax refund, it’s not guaranteed for everyone. According to data from Civic Science, a steady increase in the percentage of individuals owing the IRS has been seen, rising from 39% in 2021 to 43% in 2023.  The deadline to file your federal taxes for 2023 is set for April 15, 2024, and missing the tax deadline can have consequences like penalties and interest. So, here’s a quick guide to help you pay your federal taxes electronically, ensuring you hit that deadline without a hitch! 

Electronic Federal Tax Payment System 

Electronic Federal Tax Payment System (EFTPS) is an online service that allows taxpayers to electronically submit federal tax payments round the clock, every day of the week, 24/7. EFTPS can be utilized by corporations or individuals seeking to make payments on personal income or business taxes.  The primary function is the convenience of allowing secure payments around personal schedules and avoiding the need to make payments in person or through the mail. By utilizing EFTPS, taxpayers can effortlessly transfer funds directly from their bank account to the federal government. 

Who Can Participate in Electronic Federal Tax Payments? 

EFTPS, aka Electronic Federal Tax Payment System, is available for businesses, financial institutions, payroll companies, tax practitioners/ CPAs, and individuals to easily make their personal or business federal tax payments. 

Which IRS Tax Payments can you make through EFTPS? 

A range of payments are facilitated via EFTPS, such as: 

  • Estimated tax payments 
  • Corporate tax payments 
  • Self-employment tax payments 
  • Payroll tax payments, encompassing Federal Insurance Contribution Act (FICA) taxes 
  • Excise tax payments on specific commodities 

Business Taxes:  

Once enrolled in EFTPS, your business can use EFTPS to make tax payments electronically for the following taxes:  

Form 720: Quarterly Federal Excise Tax Return  

Form 940: Employer’s Annual Federal Unemployment Tax (FUTA) Return  

Form 941: Employer’s Quarterly Federal Tax Return  

Form 943: Employer’s Annual Tax Return for Agriculture Employees  

Form 945: Annual Return of Withheld Federal Income Tax  

Form 990-C: Farmer’s Cooperative Association Income Tax Return  

Form 990-PF: Return of Private Foundation  

Form 990-T: Exempt Organization Business Income Tax Return Section 4947(a)(1) Charitable Trust Treated as a Private Foundation  

Form 1041: Fiduciary Income Tax Return  

Form 1042: Annual Withholding Tax Return for U.S. Sources of Income of Foreign Persons  

Form 1120: U.S. Corporation Income Tax Return  

Form CT-1: Employer’s Annual Railroad Retirement Tax Return. Section 4947(a)(1) Charitable Trust Treated as a Private Foundation 

In addition, you can use EFTPS to make non-depository payments of Federal income, Department of the Treasury estimated, estate and gift, employment, and various specified excise taxes. 

Click here to learn about all the business federal taxes, you can pay using EFTPS.  

Individual Taxes: 

Use EFTPS to make individual tax payments electronically for the following taxes: 

Form 1040:  U.S. Individual Income Tax Return 

Form CT-2: Employee Representative’s Quarterly Railroad Tax Return 

Form 706: United States Estate (and Generation-Skipping Transfer) Tax Return 

Form 709: United States Gift (and Generation-Skipping Transfer) Tax Return 

Form 926: Return by a U.S. Transferor of Property to a Foreign Corporation 

Form 990-BL: Information and Initial Excise Tax Return for Black Lung Trusts and Certain Related Persons 

Form 5329: Additional Taxes on Qualified Plans (including IRAs) and Other Tax Favored Account 

Form 8288: U.S. Withholding Tax Return for Depositions by Foreign Persons of U.S. Real Property Interests 

Form 8404: Interest Charge on DISC-Related Deferred Tax Liability 

Click here to learn about all the individual federal taxes, you can pay using EFTPS. 

Make Electronic Federal Tax Payments with Tax1099 

As a IRS-authorized eFiling platform for 1099, W-2, and 94X forms, Tax1099 recognizes the value of efficiency in tax information reporting in today’s fast-paced world. Offering the IRS Federal Tax Payment service, Tax1099 provides an ideal and secure solution for both business entities and individuals looking for a convenient and secure way to pay their federal tax obligations. 

How to make IRS Tax Payments? 

Steps to pay your federal tax payments using Tax1099: 

Step 1: Gather Info to Enroll Yourself 

Gather the following information:  

  • Taxpayer Identification Number i.e. Employer Identification Number (EIN) or Social Security Number (SSN) 
  • Bank account details 
  • Address and name as they appear on your IRS tax documents 

Note: If you haven’t already enrolled, Select the option ‘Add Enrollment’ and fill in the required details. If you want to pay individual taxes or pay taxes for a business, select individual or business respectively. 

Step 2: Enter Taxpayer Details 

Follow the prompts, enter your details, and proceed. Enter your employer identification number or social security number, the four-digit PIN you received in the mail, and the banking information you used during enrollment.  

Step 3: Verify the Details 

Select the tax form, payment type, tax period, and amount (and subcategory information, if applicable). Tax1099 allows you to schedule your payments 365 days (1 year) prior so you can stay stress-free and avoid any penalties or interest. 

Verify all the details. 

Step 4: Make your Payment  

When you enroll in EFTPS, you can select the payment method as EFTPS Direct. This method instructs EFTPS to move the funds from your account to the Treasury’s account on the date you designate. Select the Automated Clearing House (ACH) Debit method on the enrollment form.  

Select the date you want your payment to be received.  
Keep in mind that you should schedule your tax payment at least one business day prior to your tax due date, before 8:00 pm ET. 

Step 5: Get Notified upon payment confirmation 

Follow the screens through the process. Once accepted, you’ll get an EFT Acknowledgment Number as your receipt. You will also receive your payment confirmation through email. 

EFTPS Payment Process

Need more guidance?  

If you owe any federal taxes, don’t worry. Tax1099’s tax profs can help you with this and other important IRS tax tips. You can even chat with our AI-powered tax assistance that’s available for you 24/7.  
When you file with us electronically, we’ll help you make your IRS payments with ease.