IRS Announces Good News for Businesses

WASHINGTON - The Internal Revenue Service has good news for over 890,000 business taxpayers -- many of them may now be able to throw away the paper and file their quarterly payroll returns, Forms 941, by telephone. Like the TeleFile system for individuals, this free, paperless, telephone filing method automatically figures the tax and any refund or balance owed.

The Form 941 TeleFile pilot will begin with returns due by April 30, 1997, for the first quarter of 1997. Special Telefile packages with the necessary information for potential filers will arrive during the next few weeks. These packages include payment vouchers for those who owe money, along with paper Forms 941 for those who may not qualify for TeleFile.

The test is limited to taxpayers in 14 states in the southeastern United States -- roughly, Delaware through Louisiana -- and the District of Columbia.

"Filing by phone is quick, easy and convenient," said IRS Commissioner Margaret Milner Richardson. "I am sure that business owners will be as pleased with TeleFile as individuals are. Already this year, more individuals have filed by phone than in all of last year."

Businesses may also pay their federal taxes electronically -- using a telephone or a personal computer -- through IRS' Electronic Federal Tax Payment System (EFTPS). This system eliminates paper tax deposit coupons and trips to the bank for businesses. Over 800,000 have already enrolled to pay their taxes through EFTPS.

"Telefile and EFTPS are two ways to make it easier for business owners to file and pay their taxes," said Richardson. "They will have more time to spend on business."

The TeleFile system will eventually be available nationwide for employment taxes, just as it is for individuals.

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