Washington (Nov. 26, 2002) -- Businesses that pay their taxes using the Electronic Federal Tax Payment System have significantly fewer IRS penalties assessed, according to research conducted by the Internal Revenue Service.The research analyzed 68,000 taxpayers, and compared the penalties assessed to EFTPS users with the penalties assessed to taxpayers that use a paper check and Federal Tax Deposit (FTD) Coupon to make payments for Form 941, Employer's Quarterly Federal Tax Return. The study showed that non-EFTPS users were 31 times more likely to be assessed a penalty than EFTPS users.
"We believe this shows one of the hidden benefits to EFTPS-the ability to schedule payments in advance to avoid penalties," said Robert Hunt, IRS Director, Taxpayer Education and Communication.
"The system helps taxpayers set up dates on which payments will be made even if they are out of town or on vacation when a payment is due. EFTPS takes the worry out of remembering the deadlines."
-- Electronic Accountant Newswire staff
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