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Electronic Payments (EFTPS)

EFTPS Payment Scheduling Explained

1. What Does "Schedule" Mean in EFTPS?

When you schedule a payment in EFTPS, you:

  • Choose a future date for the IRS to withdraw funds from your bank account.

  • Funds are debited on that date (not immediately).

Example:

On April 1, you schedule a $5,000 tax payment for April 15.
➔ Your bank account is debited on April 15.

2. Key Rules for Scheduling Payments

Taxpayer Type How Far Ahead You Can Schedule Deadline to Schedule
Individuals Up to 1 year in advance 1 business day before due date.
Businesses Up to 120 days in advance 1 business day before due date.

Note: Payments cannot be scheduled for same-day debit (except via "Same-Day Payment" through some banks).

3. How Funds Are Debited

  • EFTPS-Direct: IRS withdraws funds directly from your bank account on the scheduled date.

  • EFTPS via Financial Institution: Your bank sends funds to the IRS (must initiate before their cutoff time).

Example:

You schedule a payment for June 15 via EFTPS-Direct:

  • June 15: IRS debits your bank account.

  • You get an EFT Acknowledgment Number as proof.

4. Same-Day Payments (Exception)

  • Only through select banks: Some financial institutions offer same-day payments (for emergencies).

  • Not part of standard EFTPS: Requires direct coordination with your bank.

What You Must Do

  1. Enroll in EFTPS (requires SSN/TIN, PIN, and password).

  2. Schedule payments early (at least 1 day before due date).

  3. Ensure funds are available on the scheduled date (failed payments = penalties).

  4. Save the EFT Acknowledgment Number as proof of payment.

Memory Cheat Sheet

┌───────────────────────────────┐  
│ **EFTPS Scheduling Rules**     │  
├───────────────────────────────┤  
│ ✅ Schedule up to:             │  
│    - Individuals: 1 year      │  
│    - Businesses: 120 days     │  
├───────────────────────────────┤  
│ ❗ Deadline: 1 business day    │  
│    before due date            │  
├───────────────────────────────┤  
│ 💸 Funds debited ON the       │  
│    scheduled date (not early) │  
└───────────────────────────────┘

Exam Tip: If a question mentions "EFTPS scheduling," think advance planning + 1-day minimum lead time.

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