What Was IRS Form 8109 and What Replaced It?
Federal tax deposits once required paper coupons like Form 8109. Learn about the transition to the current mandatory electronic payment system for businesses.
The Obsolescence of Form 8109
Form 8109, the Federal Tax Deposit Coupon, was a paper voucher businesses historically used to submit federal tax payments. The IRS provided a booklet of these pre-printed coupons containing the business’s name and Employer Identification Number (EIN). When a tax deposit was due, a business would complete a coupon with the specific tax type, period, and amount and submit it with payment.
The IRS made Form 8109 obsolete, and as of January 1, 2011, it is no longer accepted for making federal tax deposits. This change was mandated by the U.S. Department of the Treasury to modernize the tax payment process and increase efficiency. The transition away from the paper-based coupon system was aimed at reducing processing errors, improving payment accuracy, and providing a more secure method for handling tax funds.
The Modern Method for Federal Tax Deposits
Federal tax deposits must now be made electronically through the Electronic Federal Tax Payment System (EFTPS). An exception exists for businesses with a quarterly payroll tax liability of less than $2,500, which may be permitted to make payments with their tax return instead of depositing them separately. EFTPS is a free and secure online service provided by the U.S. Department of the Treasury that allows businesses and individuals to make tax payments 24/7.
The system accommodates all payments previously made with Form 8109. Businesses use EFTPS to pay federal employment taxes, including withheld income, Social Security, and Medicare taxes. It is also the required method for corporate income taxes, federal unemployment (FUTA) tax, and various federal excise taxes.
How to Use the Electronic Federal Tax Payment System (EFTPS)
To use EFTPS, a business must enroll by providing its legal name, Employer Identification Number (EIN), business address, and bank account information for debits. After submitting the enrollment application, a Personal Identification Number (PIN) is sent via U.S. mail to the business’s IRS address of record. This process takes five to seven business days.
After receiving the PIN, a user logs into the EFTPS website using their EIN, PIN, and a password. To make a payment, the user enters the tax form, tax period, and the payment amount. Payments can be scheduled up to 365 days in advance, and the funds will be withdrawn on the selected payment date. The system provides an EFT Acknowledgement Number as immediate proof of the transaction.