Federal Tax Depositing Made Easier
When we spoke to the IRS representative at TAXLINK, she said that the program is good for all the taxes that are normally paid through the Form 8109 paper coupons. For the majority of small business owners, this means the 940 (FUTA), 941 (FICA, Medicare, and withholding, and the 1120 (corporate) taxes. In order to enroll in the program, all you need to do is complete an application, have your bank sign it and mail it to IRS. For those of you who have an accountant who processes your tax deposits, there is an additional form that allows him (or her) to make the debits on your behalf. The IRS representative also said that the program works on virtually every type of account you may have whether it be at a federal reserve bank, a savings and loan, a money market or even a credit union.
To actually make a payment, you must call or modem your information the business day before the tax is due. The money will be withdrawn from your account the next business day (the day it is due). When you make your payment, you will be asked to verify the information you have input on your computer or telephone and then will be given a reference number should there be a question about your payment at a later time.
To make the program even more convenient, a provision is under advisement to allow you to make the arrangements for your payment at any time in the month and then have the funds withdrawn on the date you specify. This would allow you to calculate your tax due at the end of your accounting month, have it paid on the due date and not have to worry about it again! Once you enroll for TAXLINK, you will be advised when this provision will take effect.
For more information on TAXLINK, you may call the Agency Consulting Group Tax Hotline at 856-779-2430 or the special IRS TAXLINK HELPLINE at 800-829-5469. Please note that the IRS phone number is specifically for TAXLINK and not a general IRS phone number.