Tax Issue Update: Elimination of Paper Coupons (Form 8109/8109-B) For Federal Tax Deposits Beginning January 1, 2011, the Treasury Department will no longer maintain the paper coupon system. Businesses and organizations that file monthly, semi-monthly, quarterly, and/or annual tax payments on Form 8109 or 8109-B will be affected by this change, and must take steps now to enroll in the alternative system of filing called the Electronic Federal Tax Payment System (EFTPS). You should initiate the enrollment process well before the end of 2010. Beginning January 1, taxes required to be deposited electronically will include: FICA taxes and withheld income taxes Federal unemployment taxes Corporate income and corporate estimated taxes Unrelated business income taxes of tax-exempt organizations Private foundation excise taxes Taxes withheld on nonresident aliens and foreign corporations Estimated taxes on certain trusts Railroad retirement taxes Non-payroll taxes, including backup withholding Excise taxes reported on Form 720, Quarterly Federal Excise Tax Return *An exception to the electronic deposit requirement includes employers with a deposit liability of less than $2,500 for a return period may remit employment taxes with their quarterly or annual tax return. The IRS has issued proposed regulations for depositing federal taxes through the Electronic Federal Tax Payment System (EFTPS) beginning January 1, 2011. These proposed regulations are expected to be finalized by the end of 2010; however, the rules do not change as far as required amounts to be deposited. Below is a summary of the regulations as well as what you need to do to enroll in the EFTPS system. Visit us online at www.wittmares.com. Tax Issue Update: Elimination of Paper Coupons (Form 8109/8109-B) For Federal Tax Deposits (Continued) Information about EFTPS EFTPS is available 24 hours per day, 7 days per week EFTPS may be accessed either online or by phone No fees are charged for scheduling payments yourself using EFTPS Payments must be initiated at least one calendar day prior to the tax due date before 8:00 p.m. ET Businesses can schedule payment instructions up to 120 days in advance After the tax payment instructions have been accepted, EFTPS initiates a debit transaction against the designated bank account on the date indicated in the instructions Payments can be cancelled online or by phone up to two business days in advance of the scheduled payment date 16 months of EFTPS payment history is available online at www.eftps.gov or by calling EFTPS Customer Service at 800-555-4477 for business customers EFTPS Customer Service has live representatives available to answer questions 24 hours a day, 7 days a week Enrolling in EFTPS Beginning January 1, 2011, Form 8109/8109-B (below) will be eliminated. If you are affected by this change, please review the information below regarding enrollment in the EFTPS system. Visit us online at www.wittmares.com. Tax Issue Update: Elimination of Paper Coupons (Form 8109/8109-B) For Federal Tax Deposits (Continued) EFTPS enrollment for existing businesses Enroll online by visiting the EFTPS website at www.eftps.gov or call EFTPS Customer Service to receive an enrollment form to be completed and mailed back to the EFTPS Enrollment Center EFTPS will send a confirmation package after enrollment processing that will include a step-by-step payment instruction booklet and instructions on how to obtain an internet password. A PIN number is also sent under separate cover within 7 business days. Payments can be made by phone as soon as your PIN is received EFTPS online can be used as soon as your internet password is obtained Express enrollment for new businesses Businesses requesting a new employer identification number (EIN) and indicating you will have federal tax deposit obligations are automatically pre- enrolled in EFTPS New business taxpayers will receive notification in the mail that you are pre- enrolled along with your EFTPS PIN New businesses must activate your enrollment by calling a secure 800 number and entering your bank account information Information needed to complete the EFTPS enrollment form Taxpayer identification number. For businesses, this is your Employer Identification Number (EIN). The routing transit number (RTN) for the financial institution. This is the 9-digit number appearing along with the account number on checks. The financial institution account number and account type (checking or savings) for the account from which payments will be made. Please Note: If federal taxes are paid from more than one bank account, separate enrollments for each account must be completed Should you have any questions about the process or if you would like to review your individual situation, please do not hesitate to contact us and we would be happy to discuss this matter with you in more detail. Visit us online at www.wittmares.com.