The Internal Revenue Service issued two revenue procedures Thursday requiring reporting agents who remit taxes on behalf of clients to use electronic systems.

Revenue Procedure 2012-32 modifies and supersedes Revenue Procedure 2007-38, and provides that “reporting agents” who remit taxes to the Service on behalf of clients must do so via the Treasury Department’s Electronic Federal Tax Payment System or another electronic system known as the Federal Tax Application that allows even faster remittances. Rev. Proc. 2012-32 also obligates reporting agents to remind their clients that the ultimate responsibility for paying taxes remains with the client.       

Revenue Procedure 2012-33 modifies and supersedes Revenue Procedure 98-32, and reflects the concept above that “reporting agents” who remit taxes to the IRS on behalf of clients must do so via the Treasury Department’s EFTPS or the Federal Tax Application. 

Rev. Proc. 2012-33 also reflects the fact that a single bank now serves as the Treasury Department’s “financial agent” to enroll taxpayers and their agents in electronic tax payment systems. The guidance reflects the rule (adopted in 2010 via amendments to the regulations under code Section 6302 -- TD 9507) that paper coupons may no longer be used for federal tax deposits.

Both Revenue Procedures will be published in Internal Revenue Bulletin 2012-35 on Aug. 20, 2012.

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