Tax Law Updates | New Proposed Regulations
August 27, 2010
Proposed Regulations Expand the Use of Electronic Payment System and Discontinue Paper Coupons Next Year
IRS Proposed Regulations to Expand the Use of Electronic Payment System
REG 153340-09; Issue Number: IR-2010-092, 8/20/2010
Consistent with a Financial Management Service initiative announced in April of this year, the Internal Revenue Service (“IRS”) has issued proposed regulations to significantly increase the number of electronic transactions between taxpayers and the federal government.
The proposed regulations (REG 153340-09) would eliminate the rules for making federal tax deposits by paper coupon because the paper coupon system will no longer be maintained by the Treasury Department after Dec. 31, 2010. The proposed regulations generally maintain existing rules for depositing federal taxes through the Electronic Federal Tax Payment System (“EFTPS”).
According to the IRS, using EFTPS to make federal tax…
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