FTD

(23) Federal Tax Deposit (FTD) Most penalties are paid by

In the test, limited to business payments of federal taxes from Georgia, participating depository institutions electronically report federal tax deposit payments via touch-tone telephone or PC to the Minneapolis Reserve Bank for TT&L processing.

Would Eliminate Paper Coupons for Federal Tax Deposits

The Form 8109 Federal Tax Deposit Coupon is the form that an employer uses to deposit payroll taxes with a financial institution which in turn hands the money over to the government.

I hope this information and your experience in the development of the now deposit regulations assure you that the Service fully intends to remain a partner with employers and other stakeholders in the Federal Tax Deposit System.

Eligible fillers may submit a required payment along with their return, subject to limits imposed by the Federal Tax Deposit Rules.

The Internal Revenue Service is undertaking a test program designed to increase the speed and reduce the burden of compliance with Federal tax deposit requirements.

The employer must deposit amounts withheld for federal income, FICA and FUTA taxes with an authorized bank or Federal Reserve Bank accompanied by a completed Form 8109, Federal Tax Deposit Coupon.

The excise tax must be deposited with Form 8109, Federal Tax Deposit Coupon, at an authorized Federal Reserve Bank in compliance with section 6302(c)(1).

For example, we have offered comments on how large the boxes should be on Form W-2 (3) and on the federal tax deposit coupon, and we have recommended that the IRS print its form on standard sized, 8-1/2 by 11 inch paper.

The IRS will not impose penalties through June 30, 1998 on businesses that make timely deposits using paper Federal tax deposit coupons while converting to the new Electronic Federal Tax Payment System (EFTPS).

Mandated taxpayers can no longer use Form 8109, Federal Tax Deposit Coupon, to make Federal tax deposits.