In 2012, the IRS initiated Rev. Proc. 2012-32. This ruling made it mandatory for all payroll service providers (PSP) to inform their clients — initially upon contract and at least every quarter — that they are filing returns and/or paying taxes on behalf of the clients.
The PSP were supposed to encourage their clients to sign up for the Electronic Federal Tax Payment System (EFTPS) and check their deposits frequently. The PSP were also mandated to use EFTPS to make these payments.
An additional enhancement of this program became effective in July of 2017. Now employers can sign up for an EFTPS email confirmation for every payment that is made on their Federal Employer Identification Number (FEIN). To receive this service, companies (and individuals) must sign up.
The emails will be sent at the following times:
- At schedule of payment — there will be no identifying information other than the confirmation number, and the first three digits (274) identify a batch filer — if the deposits are made by a bulk filer, the three digits will be random
- Reminder 3 days in advance of payment, if applicable — batch filers only
- At cancellation of payment
- For returned payment
- For any change of email address on the account
Here are a few more things to know when you receive the emails above. The email will come from EFTPS.gov. The confirmation number will be in the format of xxx-xxxx-xxxx-xxxx. For security and privacy, the email will not reference the tax paid or the amounts.
Text of the email will contain the following:
This is an auto-generated email and is not monitored by the IRS. Please do not respond to this email. If you would like to check the status of your transaction, you can view your transaction history by logging into your account on the EFTPS home page.
If you have any questions about this email, visit the “help and information” link on the EFTPS home page.
This project has been a long time coming. I encourage all companies to start using this valuable service to check on the deposits being made to your organization.
Visit the Thomson Reuters Help & How-To Center to learn more about getting started with EFTPS.