The IRS uses Federal Tax Deposit Coupons, of which Form 8190 is one, to keep tabs on how much money a company has to pay in taxes.
The form served as a coupon for federal tax deposits for businesses to use in keeping track of and remitting payments for payroll or corporate tax and other tax responsibilities.
Any small or large organization or business uses Form 8109 to track the taxes they need to pay. The form helps them to ensure they don’t end up paying more tax than they owe.
Is the Form 8109 Still Required?
The usage of Form 8109 was common among companies that did not use electronic money transfers for payments. However, it is no longer recognized by the IRS after 2011.
What was the Purpose of Form 8109?
The main function of Form 8109 was to keep records of tax payments made to the IRS before 2011. These tax payments were payroll taxes from employee paychecks, corporate income taxes, and other taxes needed by businesses.
Form 8109 states the amount that a business pays. This document used to be sent accompanied by tangible deposits of federal payroll taxes.
What Information Did the Form Have?
The deposit coupon had information about the tax year, date, and month when the company paid the tax. Other information is as follows:
Employer identification number (EIN).
On the right side of the coupon, the method of tax withholding and the quarter in which the tax is being assessed is included.
The applicant’s contact information, including name, address, state, city, and telephone number.
Bank name and date stamp in the appropriate place to the left of the contact information.
On the following slip of paper, the deposit amount needs to be mentioned in the boxes. The total sum, including both dollars and cents, where applicable, is mentioned.
Company's EIN is right underneath the total deposit amount.
When Should I Use an Alternative to Form 8109?
As the IRS does not recognize Form 8109 and there are other methods available that are entirely online, you should go through them first.
One of them is the Electronic Federal Tax Payment Service (EFTPS). This is the preferred method for making federal tax deposits, as recommended by the IRS.
Signing up for the service and making necessary payments can be done online. This is a free service from the U.S. Department of the Treasury.
1. Voice Response
If you don’t want to or cannot use the online system, you can still use EFTPS by phone by contacting 1-800-555-3453. You can use the voice response system by calling this number.
2. Your Financial Institution
To help you pay your federal tax deposits, your bank or financial institution may offer wire payments the same day or ACH Credit, a digital check. Before paying your tax, you should ask the bank agents whether they can provide the service and what fees you may be charged.
3. A Service Provider
It's possible that for a fee, payroll services, accountants, tax specialists, and other online tax service providers may assist you in keeping tabs on and remitting the federal tax you need to pay on your behalf.
4. Form 941
The current IRS quarterly tax return form for businesses is Form 941. It can be used to record Social Security, Income, and Medicare taxes that employers/businesses withhold. Reporting payment of the employer's share of Medicare and Social Security tax can also be made with this form.
Does the IRS Still Accept Form 8109?
Tax Return Form 8109 is no longer accepted by the IRS (since January 1, 2011). The Internal Revenue Service has decided that taxpayers can no longer use federal tax deposit coupons. Businesses are now required to make federal tax contributions online, which is why Form 8109 has been phased out.
You must still make federal tax deposits even though the IRS no longer uses Form 8109. EFTPS makes it simple and cost-free to send money online at any time. Your bank agents or accountant can also make federal tax deposits online or by paper if they are allowed to provide such services.
What Information is Needed to Fill Out Form 8109 Electronically?
Regardless of whether you have previously filed using Form 8109 or not, you must provide the IRS with the following details:
The name and contact info of your company.
A number that identifies you to your company (EIN).
Your firm's bank account and routing numbers.
In order to use the EFTPS, you'll need your personal identification number (PIN) from tha bank as well.
The sum that is set aside to cover federal, state, and local taxes and payroll withholdings.