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Financial Planning / Tax Strategies
|Subject: Re: Check vs. EFTPS: Does it matter which?||Date: 6/4/2012 1:02 PM|
|Author: irasmilo||Number: 116217 of 121114|
Back in the days when I still mailed checks, I once got a notice from the IRS saying that I hadn't paid my taxes. This was long after they cashed the check. Fortunately, I was able to provide them with copies of the front & back of the check, and they credited my account.
I suspect problems like that are less likely with electronic payment.
Generally, that's probably true.
When submitting a payment via EFTPS, you have to be very careful that you have correctly entered:
1. The correct type of tax (for businesses)
2. The correct period
Otherwise, the payment will be applied to the wrong account, or the wrong period. With a computer, doing it onscreen, you should look carefully. But some people do it by touch-tone phone, and that's easier to make that kind of mistake.
Correcting EFTPS errors isn't as simple as it could be. Back in early April, I submitted a payroll tax deposit for a client and had it credited to the June quarter (after all it was April <g>) when it was the deposit for March's payroll liabilities. I had to wait 10 days after the deposit settled, call the IRS (not the EFTPS people) and have the deposit moved to the correct quarter.
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