Boost your efforts for a paperless home office by paying your home business taxes online.
Even though most of my bills are automated, paid electronically through automatic debit, one of the bills I still write a check for is my quarterly estimated tax payment. Every quarter, I write a check. Because there is something satisfying about mailing the check on the day it's due, and not actually having the money taken out until more than a week later.
However, I've been re-thinking this method recently. Recently, I've been fairly lax. In fact, I?twice forgot to send out my quarterly payments in 2012, since I've been so busy, and there was a lot of running around due to Miranda's Summer of Awesome (which actually lasted from April through the end of September). I need to pay my quarterly taxes, since I'm self-employed. But paying late (twice!) means I have to pay interest penalties to the IRS. That sort of defeats the purpose of sending out the payment at the the last possible second and keeping my money as long as I can.
Quarterly Tax Payments Online
Due to the lapses I suffered over the course of the year, it occurs to me that maybe I need to add my home business taxes to the ranks of automatic bill payments. Lucky for me, the IRS is always accommodating when it comes to helping taxpayers keep up with what they owe.
If you want to make electronic tax payments, you can do so by enrolling with the Electronic Federal Tax Payment System (EFTPS). Enrolling takes a little effort, though. Once you beging the process, you provide information about the primary taxpayer, as well as information about joint filers (I signed up as an individual, rather than a business, because my LLC is a pass-through). You share contact information, and including financial information about your bank routing number and account number.
Once you have completed the forms, the information is then verified. When the IRS has verified the information, it will send you PIN via regular U.S. Mail. It's important to note that the EFTPS has a current policy of contacting you by mail, rather than by email, so beware of phishing attempts that claim to be from the IRS.
One of the nice things about the EFTPS system is that it has recently changed to allow you to select your own tax period and settlement dates. You do need to schedule your payment ahead of time, though. In order for the payment to be received in a timely manner, you need to schedule it by 8 p.m. Eastern Time the day before the due date. So keep that in mind.
It's possible to schedule your payments well in advance. Businesses can schedule payments up to 120 days in advance, and individuals can schedule up to 365 days in advance. Since I signed up as an individual, it's possible for me to schedule all of my tax payments for the year at one time. Which can be helpful. A set it and forget it effort for paying my home business taxes.
If you are looking to boost your efforts to make your home office paperless attempts, and if you want to make sure that your quarterly estimated payments make to the IRS when they should, consider enrolling with the EFTPS. It's convenient, and relatively easy to use.