What Is Form 8109-B and Why Is It Now Obsolete?

Form 8109-B, the Federal Tax Deposit (FTD) Coupon, was a paper document businesses used to submit federal tax payments. Companies received a book of these coupons from the IRS to accompany tax deposits made at an authorized bank or financial institution. This system provided a physical record of payment for various business taxes.

Historical Use of Federal Tax Deposit Coupons

For decades, the FTD coupon was the primary instrument for depositing a range of federal taxes. Businesses used Form 8109 to remit payments for employer-paid and withheld employee payroll taxes (Form 941). The coupons were also used for federal unemployment (FUTA) taxes (Form 940) and corporate income taxes filed on Form 1120. Other payments, such as certain excise taxes, were also handled through this system.

The process was entirely manual. A business owner or bookkeeper would select a coupon and fill in the Employer Identification Number (EIN), the business name, and the specific tax period for the deposit. The coupon was then presented with a check for the corresponding tax amount to a financial institution authorized by the Treasury to accept these payments. This created a paper trail for both the business and the government, documenting that the deposit had been made.

The Mandate for Electronic Payments

Form 8109-B is now obsolete and no longer accepted by the IRS for making tax deposits. The IRS stopped mailing paper coupon books to businesses after December 31, 2010, mandating a shift to electronic payments. This change was implemented to increase efficiency, improve accuracy, and reduce processing costs for both taxpayers and the government.

The required method for submitting federal tax deposits is now the Electronic Federal Tax Payment System (EFTPS). EFTPS is a free and secure online service from the U.S. Department of the Treasury that allows businesses to make federal tax payments 24/7. To enroll, a business needs its EIN, business bank account information, and contact details. The system provides users with a Personal Identification Number (PIN) for security and generates an immediate confirmation for every payment submitted.

Handling Existing Form 8109-B Coupons

Any previously issued Form 8109-B coupons that a business may still have are no longer valid for making tax payments. These old paper coupons should be securely destroyed, preferably by shredding, to prevent any potential misuse or confusion.

Attempting to use an old FTD coupon to make a tax deposit will result in a rejected payment. This could cause the deposit to be considered late, leading the IRS to assess failure-to-deposit penalties and interest charges. Businesses must enroll in and use the EFTPS to ensure their federal tax deposits are timely and properly credited.