Cronin & Associates, Ltd.
	Accounting & Tax Solutions Inverness, IL Phone: 847-991-5200 Fax: 847-991-8006
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IRS Offers Payroll Deposit Penalty Refund

The IRS announced an incentive to encourage enrollment in and use of the Electronic Federal Tax Payment System (EFTPS).

The EFTPS federal deposit penalty refund offer allows business taxpayers an opportunity to receive an automatic one-time penalty refund if they have been assessed a deposit penalty on Form 941, Employer’s Quarterly Federal Tax Return.   The offer is available to employers who are not mandated to use EFTPS. To qualify for the offer, the employer must:

• use EFTPS for one year (four consecutive quarters),
• make all Form 941 payments on time and,
• have previously fully paid the penalty

The IRS will look back up to four quarters prior to the compliance period for a full paid Federal Tax Deposit penalty to abate. Penalties paid earlier than one year prior to the four-quarter compliance period are not eligible for the automatic offer.

Beginning in 2005, the IRS will automatically determine which employers have achieved the four quarters of EFTPS compliance and reverse the most recent full-paid Federal Tax Deposit penalty minus any outstanding taxes.

EFTPS is a free service which gives businesses and individuals the ability to make federal tax payments electronically online or by phone.

Many of our clients have found EFTPS very easy to implement and saves time by eliminating trips to the bank to make payroll tax deposits.

If you would like more information on enrolling in EFTPS please contact us. Taxpayers can enroll in EFTPS by visiting www.EFTPS.gov or by calling EFTPS customer service at 1-800-555-4477 to receive an enrollment form by mail.

Call for a Free Initial Consultation 847-991-5200

Home | Our Services | Taxes | Quickbooks® | About Us | Contact Us | Links 1601 Colonial Parkway, Suite B • Inverness, IL 60067 • Phone: (847)991-5200 • Fax: (847)991-8006 The information presented in this website is only of a general nature, may omit many details and special rules, is current only as of its published date, and accordingly cannot be regarded as legal or tax advice. Please contact our office for more information on this subject and how it pertains to your specific tax or financial situation.