Federal Tax Deposit Coupons

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The IRS is frequently asked, “Why can’t I get a blank Federal Tax Deposit (FTD) Coupon, Form 8109-B?” The answer is, under certain circumstances, blank coupons are available. However, blank coupons should be used only when absolutely necessary.

The IRS has procedures in place for:

• obtaining blank FTD coupons, Forms 8109-B
• submitting Form 8109-C for an address change
• the same–day wire transfer option and
• making deposits

The IRS encourages employers to take advantage of the Electronic Federal Tax Payment System (EFTPS) to avoid common errors and automate the payment process. EFTPS is always the preferred method to make payroll deposits and business return payments. EFTPS is fast, secure and available 24 hours a day, 7 days a week.

Still have questions? Contact Feeley & Driscoll or call us at 1 (888) 875-9770.

Federal Tax Deposits (FTDs)

Making Federal Tax Deposits is a process most businesses must do throughout the year. Pre-printed coupon books are provided to business customers but they don’t last forever and occasionally a blank coupon may be required to make a deposit. Here are some options for making payments.

Need a coupon book?

Employers who use paper tax deposit coupons usually receive new coupon booklets automatically. If not, they should call 800-829-4933 to reorder.

Need a blank coupon?

There are options for getting blank coupons. Local Taxpayer Assistance Centers (TACs) can provide an authorized individual, depending on the employer’s deposit frequency, either four or eight Forms 8109-B with the Employer Identification Number and business name already entered. Locations are listed in the local phone directory and also at the Contact My Local Office page. If there is not a local TAC in the area, employers can call 800-829-4933 to request Forms 8109-B be mailed to them.

Another option for obtaining up to 25 blank Forms 8109-B is by writing to the IRS National Distribution Center on company letterhead. Requests should be sent to:

Internal Revenue Service

National Distribution Center

P.O. Box 8901

Bloomington, IL 61702-8901

Blank Forms 8109-B should only be used in an emergency situation and should not be used on a continuing basis.

Need to make a same-day payment?

If an employer is unable to obtain a paper coupon in time to make a required deposit, a same-day wire transfer may be an option. Employers should check with their financial institution to find out if this service is offered and if there are any applicable fees associated with using this method to make a payroll deposit.

Want to avoid the hassles of needing blank coupons?

Maybe there is a need for both you and your client to be making federal tax payments? You should consider EFTPS, it allows both you and your client to enroll separately and make different form type payments. You each have access to the payment history. If your client applied for and received an EIN after January 2004 most likely they are already enrolled in EFTPS as part of our express enrollment initiative for new businesses. They would have received a conformation package and an EFTPS PIN and all they have to do is activate per the instructions. For more information on Express Enrollment for new businesses refer to Publication 4275 found on IRS.gov

Sign up for EFTPS. Visit EFTPS to join the millions of customers already enrolled in the system. Look for information on the New Batch Provider Software that enables Tax Professionals to make multiple payments (business and individual) for multiple clients. Information will be posted on EFTPS.gov, May 16, 2006 with instructions on how to download the software.

Need to change the business mailing address?

If an employer’s mailing address changes, advise them to complete and file both Form 8109-C, FTD Address Change, found in the front of the coupon booklet, and Form 8822, Change of Address Form. Filing Form 8109-C updates the mailing address only for the purpose of delivery of tax deposit coupons. Form 8822 updates the mailing address on IRS records for all other tax purposes.

Employers who want new coupon booklets sent directly to their payroll provider or tax practitioner should complete and file Form 8109-C to show the payroll provider or practitioner’s mailing address. Filing Form 8109-C will not change the address of record with IRS.

Making a deposit?

Review Publication 15, Circular E, Employers Tax Guide (Rev. January 2006), for details as to where the payment should be sent. Publication 15 is available on the IRS website.

Common errors

One in seven paper Forms 8109-B, Federal Tax Deposit Coupon, is rejected for Employer Identification Number (EIN) and Business Name Line errors. It is important when completing a blank Form 8109-B to ensure the Business Name Line matches IRS records. Tax professionals can verify taxpayers’ EIN and Business Name Line information, with proper authorization, by calling the Practitioner Priority Service at 866-860-4259 or checking a transcript via e-Services. This and other errors can lead to a deposit being applied to the wrong tax period or form which may create additional problems in the future. To eliminate the common errors associated with an EIN and business name line, employers can make deposits electronically through EFTPS.

Join EFTPS

Employers can join the millions who are making their federal tax deposits electronically or by phone. The Electronic Federal Tax Payment System (EFTPS) is the preferred method of making payroll deposits and business tax payments. EFTPS is fast, secure and available 24 hours a day, 7 days a week. Payments may be made online or via the phone and can be scheduled up to 120 days in advance. Enrolling in EFTPS is simple and can be done by completing an application online at the EFTPS Website.

Employers can also call 800-555-4477 to request a paper application from EFTPS. Employers will receive a confirmation letter and PIN within 2-10 days if enrolling online, and 10-15 business days if enrolling by paper. More information about EFTPS is available at IRS.gov; click on the EFTPS logo.

This headliner is current through the publication date. Since changes may have occurred after the publication date that would affect the accuracy of this document, no guarantees are made concerning the technical accuracy after the publication date.

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