In addition, by signing up early, the taxpayer may avoid delays that may arise as deadlines approach. Employers must submit an enrollment form, which can take up to 10 weeks to process. An employer cannot make electronic payments until an enrollment confirmation is received. One TFA is assigned to an employer based on geographic location. The TFA withdraws funds from the employer's bank account and processes the tax payment.
Specific rules apply to each payment method for how and when to submit tax payment information.
Once an employer meets a specified threshold amount, they must file all federal taxes electronically and may not revert back to paper coupons, even if their deposits fall below the threshold amount at a future time. How an employer is notified if they are mandated Prior to a determination period, the IRS audits employers' tax deposit records. The IRS will send a mandate notice and an enrollment form with instructions to all employers who meet or exceed the threshold amount for the determination period. Penalties will not be waived after July 1, 1999.