FEDTAX II

ATTENTION FEDTAX II USERS!

FEDTAXII, which some federal agencies use for electronic federal tax payments and filing, is being decommissioned NOVEMBER 30, 2009. After that date, payments cannot be made via FEDTAX II. Federal agencies are being transitioned to the Electronic Federal Tax Payment System (EFTPS), a free service of the U.S. Department of the Treasury.

All users should archive any FEDTAX II data files to other media (paper, hard drive, etc.). Click here to download instructions on archiving existing FEDTAXII data. Note: FEDTAX II data files will NOT be available at EFTPS.gov.

All federal agency users should have received an EFTPS enrollment letter by now. If you did not, please call 1-877-FEDTAX2 (toll free), Monday - Friday, 8 a.m.-8 p.m. ET.

For information on using EFTPS, click here to download the Quick Reference Guide for Federal Agencies.

FMS is hosting the following free Webinars to help federal agencies with the transition:
(Click on the link to register.)

Tuesday, November 17, 2009 at 10:00 A.M. ET

Wednesday, November 18, 2009 at 4:00 P.M. ET

Please note: By now, non-federal agency users of FEDTAX II should have transitioned to EFTPS or another tax payment system. The Webinar content will not apply to them. Any remaining non-federal agency users should contact Melanie Rigney at Melanie.rigney@fms.treas.gov or (202) 874-6763.

FEDTAX II Q&A

Q. How will I complete my next quarterly 941 form since some of the information will be in EFTPS and some will be in FEDTAX II?
A. You must copy all FEDTAX II data you wish to retain. That data will not be ported to EFTPS. After you have saved the data to another medium (paper, disk, etc.), you will add your tax liability amounts from FEDTAX II to your EFTPS liability amount and manually input the total on your December 31, 2009, Form 941.

Q. What about Form 941X, Adjusted Employer's Quarterly Federal Tax Return or Claim for Refund?
A. This fillable form is available at www.irs.gov. It must be completed, printed, and filed manually.

Q. Do I need separate PINs to enter EFTPS.gov and to file my 941 return?
A. Yes. You should have received your EFTPS PIN via the mail by now. If you have not, call 1-877-FEDTAX-2. You will use the same 10-digit Online Filing PIN in EFTPS that you used in FEDTAX II. To learn more about obtaining an IRS PIN for electronically filing the 941 through EFTPS, visit http://www.irs.gov/efile/article/0,,id=97966,00.html.

Q. How do I get additional EFTPS PINs for other people in my office?
A. You can request additional PINs at EFTPS.gov or request them over the phone by calling 1-877-FEDTAX2.

Q. Can I still schedule a payment to settle the same day?
A. Yes.

Q. If our agency has multiple ALCs, does EFTPS require a different PIN and login for each?
A. Yes.

Q. Can payments be made in a negative (adjustment) and a positive amount, or does the amount need to be netted and only one entry made?
A. Federal Tax Deposit amounts are not broken down by tax category and there are no negative amounts allowed in EFTPS. Only one figure is needed for your FTDs made through EFTPS: the total tax liability for that payroll period. If you find that an error was made for an FTD that was made for a prior period within the same quarter, you may offset the overage. If the error involves an earlier quarter, it may be necessary to file Form 941X, Adjusted Employer's Quarterly Federal Tax Return or Claim for Refund.

Q. How do you correct a previous submitted payment?
A. You cannot change a Federal Tax Deposit amount that has already been processed through EFTPS. If the correction is for the current quarter, the amount of the next FTD payment may be offset by that amount. For example, if you determine that your week 6 FTD was over by $4,000 and your week 7 liability is for $10,000 then you may deposit $4,000 less, or $6,000 in week 7 to offset the overage paid in week 6. In this way, the Form 941 at the end of the quarter should balance against your actual liability. If your correction involves a prior quarter, it may be necessary to file Form 941X, Adjusted Employer's Quarterly Federal Tax Return or Claim for Refund.

Q. Can I still electronically submit a 941 filing to e~file through FEDTAXII?
A. No, you can only print and mail a 941 filing through FEDTAXII as of November 6, 2009. However, you may electronically submit a 941 filing to e~file through EFTPS.