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Depositing Taxes

You generally have to deposit employment taxes, certain excise taxes, corporate income tax, and S-Corporation taxes before you file your return.

Electronic deposit of taxes. Generally, taxpayers whose total deposits of social security and Medicare taxes and withheld income taxes during previous years exceeded certain amounts are required to deposit taxes through the Electronic Federal Tax Payment System (EFTPS). Starting in January 2004, any business that has a federal tax obligation (primarily C-Corporations) and requests a new EIN will automatically be enrolled in EFTPS. Through the mail, the business will receive an EFTPS PIN package that contains instructions for activating its EFTPS enrollment.

If a business is not required to make deposits by EFTPS , it can make deposits with an authorized financial institution. These deposits must be accompanied by a deposit coupon. Taxpayers not required to make EFTPS deposits may enroll in the system, which will allow tax deposits without coupons, paper checks, or visits to an authorized depositary.

Making deposits with coupons. Mail or deliver deposits with completed deposit coupons to an authorized financial institution unless you make them electronically, as discussed earlier. Usually, a mailed deposit will be considered timely if the taxpayer establishes that it was mailed in the United States at least 2 days before the due date. You may be charged a penalty for not making deposits when due, unless you have reasonable cause. Make sure you include your EIN, type of tax and the tax period for the payment on your check.

Deposit coupons. Use Form 8109, Federal Tax Deposit Coupon, to deposit taxes. On each coupon, you must show the deposit amount, the type of tax and the period for which you are making a deposit, and your telephone number. Use a separate coupon for each tax and period. You must include a coupon with each deposit you make. If you apply for an EIN and have a federal tax obligation, you will be mailed one deposit coupon. You may order a coupon book by calling 1-800-829-4933. If you have a deposit due and haven't received your coupon book, you may also call that number to get a blank coupon.