EFTPS, the Electronic Federal Tax Payment System, is now issuing Inquiry PIN numbers to business owners who use an outside payroll tax service to handle their federal payroll tax deposits.
Once a payroll tax provider enrolls a client in EFTPS, the client will now receive a letter with a separate inquiry PIN and their enrollment number. With this information, taxpayers can log into EFTPS to make sure their federal tax deposits are actually being made on their behalf.
Many business owners use an outside payroll tax service to handle their federal, state, and local payroll tax responsibilities. However, some clients have fallen victim to unscrupulous providers who do not make the federal payroll tax deposits as promised.
According to the Internal Revenue Service, taxpayers are ultimately responsible to ensure their tax returns and payments are being made in a timely manner. Even if a third-party provider fails to remit the required tax deposit, the taxpayer is still liable for all taxes, penalties, and interest due.
That’s why this new development is a real help for taxpayers, said Doug Simmons, payroll tax specialist for Patriot Software, LLC. Simmons handles payroll tax deposits for customers of Patriot PAY online payroll software.
“Business owners need to be able to trust that their payroll taxes are being deposited correctly,” he said. “The Inquiry PIN will help fight fraud and give taxpayers peace of mind that their payroll tax provider is actually doing their job.”
How the New Inquiry PIN Works
Now when a payroll tax provider enrolls the client in EFTPS, the client automatically receives a letter from EFTPS with the Inquiry PIN and an explanation of their responsibilities as a taxpayer. According to the IRS, Inquiry PINs are also being issued to taxpayers who have had any activity in their EFTPS account in the prior 12 months.
When they receive the letter, taxpayers must log in to EFTPS.gov, create a password and enter the Inquiry PIN information and enrollment number included in the letter. They should not share their PIN or password with anyone, including their payroll tax provider.
Taxpayers should use their Inquiry PINs to regularly monitor their payment history, especially since Inquiry PINs that are unused after 12 consecutive months will become invalid.
For more information, call EFTPS at 1-800-991-2245.
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