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Beginning January 1, 1997, all businesses that have made deposits of $50,000 or more in employment
taxes for the calendar year 1995 mus make Federal tax payments electronically. These taxes include corporate income taxes (Form 1120), employment taxes
reported on Forms 940 and 941, excise taxes (Form 720), taxes of tax exempt organizations (Form 990-C, Form 990-PF, and Form 990-T), and withholdings from pension and profit sharing plan distributions (Form 945).
The familiar 8109-B form will no longer be acceptable for payment of taxes; failure to use the new system will result in penalties.
Companies who meet the criteria will be receiving an enrollment form (Form
9779). Enrollment takes anywhere from 2 to 10 weeks; the form must be filed even if a payroll service is used.
There are two methods of paying...