The penalty date listed in EFTPS: Electronic Federal Tax Payment System: Answers to the Most Commonly Asked Questions (Publication 966) has been changed to June 30, 1998 (see page 2, third paragraph, last sentence, of Publication 966).

Penalties for the failure to make deposits using EFTPS will not be assessed until after June 30, 1998, for those taxpayers required to make federal tax payments electronically on and after July 1, 1997. However, taxpayers remain liable for penalties for any late deposits, absent reasonable cause.

Note:    Publication 966 is intended primarily for those businesses required to begin making electronic deposits July 1, 1997. Another group of businesses is required to begin making electronic deposits January 1, 1998. This group includes businesses that paid $50,000 or more in employment taxes in 1996 and businesses that paid other federal taxes of $50,000 or more in 1995 or 1996, but no employment taxes. These businesses will be contacted by mail during the summer of 1997.

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