It’s that time of the year again. It’s time to pay the piper and send in your quarterly estimated IRS tax payments. Happy, happy, joy, joy! It’s always fun to write that check.
Well, there’s a new (at least new to many of you) method to handle these payments. The IRS has a system called the Electronic Federal Tax Payment System (EFTPS). www.eftps.gov The EFTPS is an online tool that allows us to make payments towards any federal tax liability. This free service really is a great way to easily handle the difficult quarterly payment issue.
You will need to open an account online and link it to a bank account to fund the payments. Once setup the service will mail you a pin in seven days or so. This pin is needed to complete the set up process. NOTE: you will not have enough time to get this set up to make the 2012 Q3 payment.
Advantages of the system
- The system is simple to use and allows you to save a stamp.
- You can set up monthly payments.
- It’s secure.
- You can track payment history.
- You can set the payment date.
- You don’t need a payment voucher.
Estimated payments may not be the exciting piece of financial planning that most people focus on, but tax planning is an extremely relevant part of financial planning. As a fee-only financial advisor, I spend a great deal of time helping my clients manage their taxes, which in turn will allow for forward progress financially.
If you dread sending in that quarterly payment and can never find your payment voucher, then the EFTPS might just be for you.