The Department of Internal Revenue Services (IRS) anticipates that more than 68 million individual tax returns will be filed by the deadline of April 18, 2023, which is planned to begin on January 23 for employees in the USA.
To help both individuals and companies in filing their tax returns, the Treasury has created a free instrument called the Electronic Federal Tax Payment System (EFTPS). However, many taxpayers are still confused between direct pay and EFTPS.
The US Internal Revenue Service (IRS) building is seen on the first work day for furloughed federal workers following a 35-day partial government shutdown in Washington, DC, January 28, 2019. – The five-week government shutdown subtracted $11 billion from the US economy, about twice the amount President Donald Trump sought to fund a border wall, an independent congressional body said Monday. (Photo by SAUL LOEB / AFP) (Photo credit should read SAUL LOEB/AFP via Getty Images)
IRS Defines Direct Pay, EFTPS
Marca said the IRS developed a method called Direct Pay to assist people in filing their taxes. Direct Pay enables users to pay the IRS directly and is completely free to use.
EFTPS, on the other hand, is a free-to-use service created by the US Department of Treasury to assist both individuals and businesses in filing their taxes.
The technology is very practical because it is accessible 24 hours a day, 365 days a year.
An estimated 12 million entities, including people, companies, nonprofit organizations, and other governmental bodies, rely on EFTPS to file their taxes.
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Direct Pay vs. EFTPS: What’s Exactly The Difference?
The main distinction between EFTPS and Direct Pay, the IRS’s other electronic payment option, is pretty clear.
ADP said EFTPS is a method for paying federal taxes that is available to both people and company owners.
Direct Pay is exclusively available to individuals. Additionally, unlike Direct Pay, which has a $10 million restriction, EFTPS has no cap on the amount of money that can be transmitted.
How Company Owners Should Pay via EFTPS
Federal tax payments made through EFTPS is simple. Simply sign into the website, choose “make a payment” (if you’re enrolled) and follow the detailed on-screen instructions.
Payments can be planned out up to 365 days in advance by selecting a precise date for the money transfer. Cancellations and changes can be made up to two days in advance.
Users get a confirmation number as a receipt when the transaction is finished.
EFTPS also provides an email notification system that has a 15-month payment history and keeps users updated on the progress of their payments.
Call 1-800-555-4477 to speak with a customer service representative if you require further help.
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