IRS e-file for Business and Self-Employed Taxpayers
The IRS offers business taxpayers a wide variety of paperless methods for electronically filing their business returns. Nearly 97 percent of business forms can be e-filed. This means that nearly all businesses can benefit from working electronically with the IRS – either directly or through their tax preparer. The most common business forms available for e-file include:
- Employment taxes – Forms 940 and 941;
- Partnerships – Form 1065;
- Estates and trusts – Form 1041;
- Information returns – Forms 1042S, 1098, 1099, 5498, 8027, and W-2G;
- Corporations – Forms 1120 and 1120S; and
- Charities and non-profits – Forms 990, 990EZ, 990PF, 1120POL, 7004 (extension for Form 1120POL, and 8868.)
IRS e-file has quickly become the most used option for filing individual and business tax returns. E-file is accurate and secure and offers many benefits to users. When filing electronically with IRS, you are less likely to have problems, and problems are much easier to resolve should they occur. With e-file, less time is spent preparing tax returns and within 48 hours you can get confirmation that IRS has received your return. E-filers receive refunds in about half the time as paper filers - even faster with Direct Deposit. It also offers the convenience of filing tax returns early and delaying payments owed until the due date. In most states, you can also e-file your Federal and state returns at the same time.
For more information, visit the e-file page.
Methods to Electronically file your Employment Taxes
...Using an Authorized IRSe-file Provider
Authorized IRS e-file Providers can now file Forms 940/941 in a single transmission and use the integrated File and Pay options. You can pay your tax liability and file the tax return at the same time. You or the provider should register for a Personal Identification Number (PIN) through an approved software provider. The software will request information pertaining to you, the business client. This must be accomplished before your return is filed. The IRS will then send you the PIN, and you are ready to file your Forms 940 and 941 electronically. You can find more information regarding participation by visiting the e-file page.
Business taxpayers who have a computer, modem, and Web-based Internet access can transmit Forms 940/941 employment tax information through a third-party transmitter. Business taxpayers can visit IRS.gov to find a list of companies offering IRS e-file for Business products and services. The listing of Approved IRS e-file for Business Providers contains product descriptions, addresses, phone numbers, and direct links to the companies' Web sites. To view the complete list of providers and partners, visit e-file for Business and Self-Employed Taxpayers.
...Using a Payroll Service Provider (Reporting Agent)
Business taxpayers using a payroll service provider can electronically file Forms 940/941 if their service provider offers these services. The Approved IRS e-file for Business Providers list contains a Payroll Service Provider category.
Modernized e-File (MeF)
Corporate returns 1120/1120S along with 53 of the most commonly used forms and schedules are available for electronic filing. Forms 990, 990EZ, 1120POL, and 8868 for Exempt Organizations, and schedules for Corporations and Exempt Organizations are also available.
Benefits of Paying Business Taxes by Electronic Funds Withdrawal
E-filing a balance due return with an electronic payment is a safe, secure, and convenient way to be assured of on-time receipt of both the return and payment. This reduces the chance of errors. Filing and paying electronically, eliminates the need to mail a paper voucher. An electronic acknowledgement is received once the return is accepted. Integrated e-file and e-pay options are available throughout the e-file season and many options are available year round. Paying business taxes by Electronic Funds Withdrawal can be made for:
- Form 940 series, 941 series, and 944 employment tax forms;
- Form 1041, U.S. Income Tax Return for Estates and Trusts;
- Form 1120, Form 1120S, and Form 1120POL, U.S. Corporation Income Tax Return and Schedule K-1 (including amended returns);
- Form 7004, Application for Automatic Extension of Time to File Corporation Income Tax Return;
- Form 8868, Application for Extension of Time to File an Exempt Organization Return;
- Form 990-PF, Return of Private Foundation or Section 4947(a) (1) Nonexempt Charitable Trust Treated as a Private Foundation;
- Payments can also be made for penalties related to Form 1065 and Form 1065B, Partnership returns.
Payments scheduled for withdrawal on or before the return due date will be considered timely. Forms 940, 941 and 944 payments cannot be scheduled in advance. The payment date for these forms will be the same as the date the return is filed. Businesses can e-file and pay at the same time as new e-file options become available. Electronic funds withdrawal payments must be initiated at the same time the return is e-filed.
For more information on electronic payment options, visit Electronic Payment Options (e-pay), or refer to Pub 3611, Electronic Payments brochure.
The Electronic Federal Tax Payment System (EFTPS)
Pay All Your Federal Taxes Securely
EFTPS is the secure method for making all of your federal tax payments online or by phone. You can use EFTPS to pay all your federal taxes. One of the many conveniences of EFTPS is the “payment scheduling” feature. This feature allows taxpayers to schedule their payment instructions up to 120 days in advance of a due date for business taxes, and 365 days for individual taxes. EFTPS then makes the payments on the dates the taxpayer indicates. This is ideal for busy or traveling taxpayers. You can schedule tax payments quarterly, weekly, biweekly, semiweekly, or monthly and not worry about missing a deadline. EFTPS is easy to use, it’s safe and secure, and you receive an immediate EFT Acknowledgement Number for every transaction as a receipt. With EFTPS you also get a 16-month payment history online. EFTPS offers users a secure way to make sure their tax payments arrive safely and correctly.
Express Enrollment for New Businesses and Required Taxpayers
Any new business taxpayer who is requesting a new EIN (Employee Identification Number) and who has federal tax deposit obligations is pre-enrolled in EFTPS. Required business taxpayers whose deposit level is over $200,000 in any year are pre-enrolled in EFTPS – payments will begin in January of the following year. An initial mailing will be sent in July and a reminder in November.
Express Enrollment for FTD Coupon Payers
A percentage of business taxpayers who previously used FTD coupons are pre-enrolled in EFTPS to make their payments electronically. They will not receive additional coupons.
Express Enrollment was developed to help businesses use EFTPS instead of writing a check and taking paper Federal Tax Deposit (FTD) coupons to a financial institution. Express Enrollment expedites the enrollment process, allowing the business taxpayer to make payments as soon as their enrollment is activated. Usually an enrollment in EFTPS takes approximately two weeks to process after receipt of taxpayer information.
A percentage of current FTD Coupon payers are also automatically pre-enrolled in EFTPS to make all their federal payments electronically. They will be sent a mailing containing an EFTPS PIN (Personal Identification Number) and instructions for activating their enrollment. FTD coupons will no longer automatically be mailed.
To enroll or get additional information, visit the EFTPS Web site or call EFTPS Customer Service on (800) 555-4477, (800) 733-4829 (TDD), or (800) 244-4829 (Spanish).
For more information about EFTPS or other electronic filing and payment options for business, visit the Electronic Options page.
Information courtesy of the Internal Revenue Service.