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IRS Issues Guidance Regarding Employer Federal Tax Deposits To Be Made By Electronic Funds Transfer

The IRS has issued guidance regarding employer federal tax deposits to be made by electronic funds transfer.  Normally, comments by the public would be taken to buffer issues that would come about and the IRS would make changes as necessary to the regulation.  This time, comments were not taken regarding security and privacy and the fact that some firms do not own computers.  The IRS’s stance is that security is adequate and firms not owning computers can make the transaction with a telephone call.  The old coupon system through banks will be phased out in the near future and this new electronic system will go forward.

Points of Interest

  • In applying the new law, the government decided it was best to phase in the provisions year-by-year to the existing system of healthcare.
  • In 2011, W-2s will have a space provided to inform employees of the value of the healthcare benefits provided to them by their employers.
  • To keep up with the changes, you should plan accordingly.

By: Basi & Basi at the Center for Financial, Legal and Tax Planning for Transworld M&A Advisors