Treasury Unveils Campaign To Convert Paper Tax Payments To Electronic

From the January 2006 Tax Season Survival Guide

WASHINGTON, D.C. — The Electronic Federal Tax Payment System (EFTPS) saw a record year in 2005 in terms of enrollment and use. But many taxpayers and tax preparers have yet to realize the benefits of using this free service to pay all their federal tax payments.

EFTPS enables tax preparers, businesses and individuals to pay federal taxes electronically, including corporate, excise and employment taxes, and 1040 quarterly estimated tax payments. EFTPS offers a variety of payment methods, including the Internet and a telephone voice response system, as well as other electronic solutions for tax preparers of all sizes.

Building on the recent momentum of EFTPS and an increased public interest in electronic interaction with the government, the U.S. Department of the Treasury announced the launch of Simplify, a national initiative to communicate to tax preparers and small businesses the benefits of paying taxes electronically through EFTPS.

In fiscal year 2005, the number of EFTPS payments processed rose 7 percent to 78 million, and the dollar volume increased 11 percent to $1.8 trillion compared with the previous year. On Sept. 15, 2005, EFTPS received $68.78 billion in payments, the highest amount in its nine-year history. More than 6 million users are enrolled.

“Although EFTPS serves a growing number of taxpayers who recognize it as a reliable, secure and convenient method for doing business with the government, far too many tax preparers and small businesses still use paper coupons,” said Donald Hammond, Fiscal Assistant Secretary. “Simplify will enable us to build on the recent successes of EFTPS and help encourage additional taxpayers to use the service.”

“In 2005, 68.4 million tax returns were filed electronically through IRS e-file. IRS now receives more returns electronically than on paper. This breakthrough shows increased public interest in electronic interaction with the government,” said Kevin Brown, IRS Commissioner, Small Business/Self-Employed Division. “The Simplify campaign exemplifies a wider effort by the Treasury to serve an increasingly wired public through a variety of electronic filing and payment processes, including IRS e-file, e-pay and e-services.”

The campaign will promote usage of EFTPS through partnerships with national, state and local tax preparers and small-business organizations, and through media, Web relations and advertising. The Treasury’s ultimate goal is to reduce Federal Tax Deposit coupon use by 56 percent, or 23.3 million coupons, by the end of September 2010. For more information, visit the Simplify Web site at 


Back to the 2006 Tax Season Survival Guide