The Electronic Federal Tax Payment System (EFTPS) is a secure service provided by the U.S. Department of the Treasury that allows taxpayers to pay federal taxes electronically online or by phone. EFTPS lets you schedule payments in advance, make payments 24/7, and manage scheduled payments through the system.
What is Direct Pay?
Direct Pay is a free service from the IRS that allows you to make secure tax payments online directly from your bank account. It’s designed for easy, direct payments to the IRS and is not used for receiving tax refunds via direct deposit.
Key Differences Between EFTPS and Direct Pay
When making tax payments, both Direct Pay and the Electronic Federal Tax Payment System (EFTPS) offer options for businesses, but they come with some key differences.
Direct Pay doesn't require registration. EFTPS requires registration, and first-time users must receive a Personal Identification Number (PIN) by U.S. mail before using the service.
Direct Pay allows up to five payments within a 24-hour period. Each payment must be less than $10 million. Exiting the application requires you to verify your identity again when you return. EFTPS allows users to schedule and make federal tax payments electronically and provides access to payment activity through the EFTPS system.
With Direct Pay, you can look up one payment at a time using your confirmation number. For access to a broader 24-month payment history, you can register for and log in to your IRS account. EFTPS lets you view pending, scheduled, canceled, returned, and processed payments and provides access to 15 months of payment history. EFTPS provides access to 15 months of payment history.
Direct Pay does not provide a phone-based payment option. EFTPS offers an automated voice-response system for making payments by phone and provides access to EFTPS services 24/7. EFTPS provides customer service assistance for payment-related questions, while Direct Pay provides online help and payment support through IRS resources.
Direct Pay limits individual payments to less than $10 million. EFTPS supports larger federal tax payments.
Feature
Direct Pay
EFTPS
Registration Required
No
Yes, PIN by U.S. mail for first-time use
Number of Payments
Up to 5 payments per 24 hours
Up to 4 payments per session and 5 per day (24 hours)
Payment History
One payment lookup at a time; 24-month history through an IRS account
15 months of payment history
Free Phone Payments
No (available for a fee through a partner company)
Yes, available 24/7
Live Customer Service
Limited
Yes, available 24/7
Payment Limit
$10 million per payment
$50 million per payment
What Federal Taxes Can You Pay Through EFTPS?
EFTPS supports a wide range of tax payments, including:
Employment & Payroll Tax
Form 941: Employer's Quarterly Federal Tax Return.
Form 940: Employer's Annual Federal Unemployment (FUTA) Tax Return.
Form 943: Employer's Annual Federal Tax Return for Agricultural Employees.
Form 945: Annual Return of Withheld Federal Income Tax.
Non-Profit Organization Tax
Form 990-PF: Return of Private Foundation or Section 4947(a)(1) Trust Treated as Private Foundation.
Form 990-T: Exempt Organization Business Income Tax Return.
Corporate - Business Income & Excise Tax
Form 1120 - U.S. Corporation Income Tax Return
Form 720 - Quarterly Federal Excise Tax Return
Railroad Retirement Tax
Form CT-1: Employer’s Annual Railroad Retirement Tax Return.
Estate & Trust Tax
Form 1041: U.S. Income Tax Return for Estates and Trusts.
Withholding Tax
Form 1042: Annual Withholding Tax Return for U.S. Source Income of Foreign Persons.
Pay your Federal Taxes with TaxBandits EFTPS Online Payment Solution!
TaxBandits offers a seamless EFTPS Online solution to simplify your federal tax payments. With TaxBandits, you can securely pay your federal taxes 24/7 from anywhere, anytime. TaxBandits simplifies the federal tax payment process by handling the EFTPS-related setup and payment workflow through the platform. You’ll stay updated with instant email notifications as soon as your payments are scheduled. Even if you’ve filed your tax forms elsewhere, you can still make fast and secure federal tax payments through TaxBandits. Want to know how to pay your taxes using EFTPS with TaxBandits? Follow these steps:
Select or Add Taxpayer - Choose a taxpayer from your address book or add a new one. Then, select the bank account for payments.
Authorize TaxBandits with Form 8655 - Review and e-sign Form 8655 to authorize TaxBandits, as your reporting agent, to make applicable federal tax deposits and payments on your behalf.
Add & Verify Bank Account - Enter your bank account details for EFTPS payments and verify them.
Review & Schedule Payments - Check your payment summary, complete the registration, and schedule your payments with ease.
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