The enrollment process takes up to ten weeks, so the taxpayer should apply early enough to allow time for processing. If the taxpayer is not enrolled by the deadline for electronic deposit, penalties resulting from improper deposit will be imposed. See IRS Publication 966. Taxpayer contacts a designated financial agent of the U.S. Treasury Department via computer or telephone, and gives instructions for the agent to withdraw funds from the taxpayer s account.
Payment is considered made when the funds are withdrawn.
IRS does not plan to charge any fees for the transactions. The financial institution transfers the funds to the Treasury s account at a Federal Reserve Bank. The taxpayer must initiate the transaction one day before the due date. Payment is considered made when the funds are transferred to the Treasury Department s account. Deposit Deadlines Federal Tax Dep.