EFTPS-FTD Penalty Refund Offer

Courtesy of NAEA

In case you missed it . . . IRS has announced nationwide implementation of the EFTPS - FTD penalty refund offer.

This allows business owners, who were assessed and fully paid a Form 941 payroll tax deposit penalty, the opportunity to receive a one-time penalty refund if they sign up for EFTPS, use it for one year (4 quarters), and make all required payments.

The offer is also available to current non-mandatory EFTPS users.

EFTPS is applicable to all taxpayers. However, with this initiative, it offers a special opportunity to reach out to business owners with employees, who have previously been assessed penalties and may be struggling because of it.

EFTPS is an efficient, user-friendly system, costs nothing to use, and will make tax payments trouble free. Now, with this initiative, IRS will look back up to four quarters prior to the four-quarter compliance period for a fully paid FTD penalty to abate.

Penalties paid earlier than one year prior to the four- quarter compliance period are not eligible for the automatic offer.