Taxpayer Relief Act of 1997 affords businesses more time to switch to EFTPS (Electronic Federal Tax Payment System)

• Jurisdiction: United States
• Date: 01 October 1997
• Author: Johnson, Robert T.

The IRS will not impose penalties through June 30, 1998 on businesses that make timely deposits using paper Federal tax deposit coupons while converting to the new Electronic Federal Tax Payment System (EFTPS). Under the law, taxpayers with more than $50,000 of Federal employment tax deposits in 1995 were required to enroll in EFTPS and make deposits electronically by July 1, 1997.

To meet the demands of the future, the Service is modernizing the way it collects business taxes; through EFTPS, financial institutions, taxpayers and the IRS are linked together. Employers enrolled in this system can pay employment taxes simply by transferring funds electronically (by telephone or computer) from hank accounts...