Owith tax return season should officially start on January 23 for workers in the UNITED STATESnow is a great time to explore the tools you can use to streamline the filing process.
It is estimated that the Department of Internal Revenue Services (IRS) expects more than 68 million individual tax returns to be filed by the April 18, 2023 deadline.
With this in mind, the Treasury has developed a free tool called the Electronic Federal Tax Payment System (EFTPS) to help individuals and organizations file their tax returns.
What is TVET?
As mentioned earlier, the EFTPS is a free tool designed by the United States Department of Treasury that helps individuals and businesses file their taxes.
The system is very convenient because it is available 365 days a year, 24 hours a day.
An estimated 12 million groups, including individuals, businesses, nonprofits, and other government organizations, rely on EFTPS to file their taxes.
What types of payments can be made via EFTPS?
Here are the different types of payments an individual or business can make using the EFTPS system:
- Estimated taxes
- Society taxes
- Self-employment taxes
- Payroll taxes, including federal taxes on insurance contributions
- Excise taxes on alcohol, gasoline and certain other goods
What is direct payment?
Just like EFTPS, Direct Pay is a system introduced by the IRS to help individuals file their taxes. Just like the EFTPS system, Direct Pay is free and allows individuals to pay the IRS directly, as the name suggests.
Difference Between EFTPS and Direct Payment
Although both tools are designed to speed up the tax filing process, the main differentiator between the two is that the EFTPS system allows individuals and business owners to pay their federal taxes, while the payment system direct is only open to individuals.
Another key differentiator between the two is the fact that the EFPTS system has no cap while the Direct Pay system caps payments at $10 million.