With tax season due to formally begin on January 23 for US workers, now is the ideal time to learn about the tools available to ease the filing process.
The Department of Internal Revenue Services (IRS) estimates that more than 68 million individual tax returns will be filed prior to the April 18, 2023 deadline.
In light of this, the Treasury has developed a free program called the Electronic Federal Tax Payment System (EFTPS) to assist individuals and businesses in filing their tax forms.
What Is EFTPS?
EFTPS exists to ease the tax return filing procedure. As previously stated, the EFTPS is a free program developed by the United States Department of the Treasury that assists both individuals and businesses in filing their taxes.
The system’s availability 365 days a year, 24 hours a day is quite convenient.
EFTPS is used by an estimated 12 million groups, including individuals, businesses, nonprofits, and government agencies, to file their taxes.
The EFTPS system allows the following types of payments from individuals and businesses:
- Estimated taxes
- Corporate taxes
- Self-employment taxes
- Payroll taxes and Federal Insurance Contributions
- Payroll taxes, including Social Security and Medicare
What Is Direct Pay?
Similar to EFTPS, Direct Pay was developed by the IRS to assist individuals in filing their taxes. Direct Pay, like EFTPS, is free to use and allows individuals to pay the IRS directly, as the name suggests.
While both systems are designed to speed up the tax filing process, the primary difference between them is that the EFTPS system allows both people and business owners to pay their federal taxes, whilst the Direct Pay system is only available to individuals.
The EFPTS system does not have a payment limit, whereas the Direct Pay system has a 10-million-dollar payment limit.
Tax Season: Deadline For Submitting Taxes
Nevertheless, tax season has begun. Because the IRS has announced when it will begin accepting tax returns, it is not too early to begin assembling your tax paperwork.
The IRS expects to receive more than 168 million individual tax returns in 2018. The majority of Americans must file their taxes by Tuesday, April 18, 2023. This is due to the fact that April 15 is a Saturday and Emancipation Day is celebrated in Washington, DC on April 17.
According to the Internal Revenue Service, federal holidays and Washington, D.C. holidays affect everyone’s tax filing dates. The tax filing deadline for California residents impacted by recent catastrophic storms is May 15.
If you are serving in the military overseas, including in a combat zone or as part of a contingency operation supporting the United States Armed Forces, you may be granted additional time to complete your tax return.