According to FMS or Financial Management Service they propose new regulations where it can help the Treasury Department to lessen their burdens on keeping the records of taxpayers. This said proposal is to increase the numbers of electronic transaction between the federal government and taxpayers.

This is the new proposed regulations “REG 153340-09“. On this proposal EFTPS or Electronic Federal Tax Payment System will handle new rules regarding on depositing income or federal taxes. Due to fact, that the Treasury Department can no longer handle the coupon paper system after December 31, 2010.

This is very favorable for both taxpayers and federal government. Why? You can make your tax payments 24 hours a day 7 days a week.

You can also use the internet or telephone for any deposits. This new system can also decreases any payment related errors that may result to penalty. It will allow tax payers to schedule the dates on making their payments even though they are on vacation or out of town. The important thing is you can schedule your desired payment date up to 4 months in advance.

More details with regards on the taxes that needs to be deposited by the use of EFTPS, like dollar thresholds and specific requirements in the said proposed regulations.

So REG 153340-09 is the latest Tax Update from Financial Management Service.