What Is EFTPS and Why It Matters for C-Corporations
The Electronic Federal Tax Payment System (EFTPS) is the U.S. Treasury’s official online system for paying federal taxes. Every C-Corporation should have access to it — it’s secure, free, and allows you to schedule payments 24/7 directly from your business bank account.
For corporations, EFTPS is the standard method to pay:
- Corporate income tax (Form 1120)
- Payroll taxes (Forms 941, 940, 945)
- Estimated quarterly payments
- Excise or specialty taxes
Using EFTPS ensures payments are applied correctly and on time. It also satisfies the IRS requirement that most business tax payments be made electronically — mailing a check is no longer acceptable for many C-Corps.
How to Enroll and Log In to EFTPS (Step-by-Step)
Setting up EFTPS can be confusing the first time. Here’s a clear guide for your C-Corp.
Step 1 – Gather What You’ll Need
Before starting enrollment, have these details ready:
- EIN (Employer Identification Number)
- Business name and address exactly as the IRS has it on file
- Bank account and routing number from which payments will be made
- Contact name and phone number for the business
Step 2 – Go to the Official EFTPS Site
Visit www.eftps.gov.
Click Enroll, then choose Business Enrollment.
Do not use any third-party sites — EFTPS enrollment is always free.
Step 3 – Complete the Enrollment Form
You’ll enter your corporation’s EIN, business name, banking information, and contact details.
After submitting, the Treasury will verify your information and send a confirmation letter.
Step 4 – Wait for Your PIN in the Mail
A Personal Identification Number (PIN) will be mailed to the address the IRS has on record for your C-Corp.
This typically arrives in 5–10 business days.
You can’t log in until you have that PIN.
Step 5 – Receive and Set Your Internet Password
Once the PIN arrives:
- Go back to www.eftps.gov
- Click Login → Business
- Enter your EIN and PIN
- The system will prompt you to create an Internet Password
Keep your PIN and password in a secure place — they are both required for future logins.
Step 6 – Make Your First Payment
After logging in:
- Click Make a Payment
- Select the correct tax form type (for example, Form 1120 for corporate tax or Form 941 for payroll)
- Enter the tax period and amount
- Choose the date you want the payment withdrawn
EFTPS will generate a 15-digit confirmation number — save this for your records. It’s proof of payment.
Step 7 – Track and Manage Payments
You can view payment history and scheduled transactions up to 15 months back.
If you need to cancel or change a scheduled payment, do it at least two business days before the scheduled date.
What If You Need to Pay Before You Get Your PIN?
Many new corporations run into this issue — taxes are due, but the EFTPS account isn’t active yet. Here’s what to do.
Option 1 – Same-Day Wire Transfer
You can make a same-day federal tax payment through your bank.
Ask your bank for the “Federal Tax Collection Service (FTCS)” or “EFTPS Same-Day Wire” option.
Provide your EIN, tax form type, and tax period with the payment.
Option 2 – IRS Direct Pay (Limited Use)
If you’re paying corporate income tax for a small C-Corp, you may temporarily use IRS Direct Pay.
Select Business → Corporate Tax (Form 1120) → Balance Due or Estimated Payment.
Be aware that large corporations or those required to deposit electronically should transition to EFTPS as soon as possible.
Option 3 – Credit Card or Third-Party Processor
You can use IRS-approved payment processors.
They charge a small convenience fee but allow same-day payments if EFTPS isn’t active.
Tips for Smooth Setup and Compliance
- Start early. Enrollment and PIN delivery take time.
- Use consistent information. The name, address, and EIN must match IRS records exactly.
- Keep confirmations. Always save your EFTPS confirmation number or wire reference number.
- Set reminders. Schedule estimated and payroll tax payments in advance.
- Update when needed. If your business address or bank changes, update your EFTPS profile immediately.
Final Thoughts for C-Corp Owners
EFTPS isn’t optional for most corporations — it’s the IRS’s required method for electronic tax deposits. Setting it up once saves endless headaches later and keeps you compliant year-round.
