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The Electronic Federal Tax Payment System, or EFTPS, is a free service that offers a way to pay personal and business taxes by phone or the internet.
EFTPS was launched in 1996 to help taxpayers make automatic direct deposit payments. It also provides a government run payment plan option to pay taxes over time.
Under an EFTPS installment payment agreement, a low interest rate is charge on the outstanding tax balance. It does not mean the taxpayer will escape fees and/or penalties for late payments; however, a taxpayer enrolled in this kind of monthly direct deposit plan can spread the impact of such fees out over time until the balance is paid in full.
During today’s unpredictable economy, many taxpayers are finding that they cannot pay all the taxes they owe by the tax deadline. The secure online EFTPS payment option helps ease the financial impact.
Payments can be made any time, day or night, or they can be scheduled in advance online.
There are more than 12 million taxpayers currently enrolled in the system with transactions now totaling nearly $25 trillion. Find out more: EFTPS Payment Option Information.
