The IRS is sending business taxpayers notices by mail announcing that effective January 1, 2011, they are required to make their federal tax deposits electronically. The notice states that failure to make an electronic payment will result in a 10% penalty (of the tax due) for each non-electronic deposit.
The IRS notice instructs taxpayers who currently use the Form 8109 or 8109-B coupon form to contact their financial institution to find out its cut-off date for accepting Federal Tax Deposit coupons.
? Planning Tip: If you file your own payroll tax returns, the IRS has an Electronic Federal Tax Payment System that can be used. You can visit www.irs.gov/epay, www.eftps.gov, or call the IRS at 1-800-830-5215 or 1-888-434-7338. By visiting www.irs.gov and searching for “Tax Topic 757”, you can learn more about electronic filing.