TIGTA exposes faults in operation of electronic payments system

International Tax Review is part of Legal Benchmarking Limited, 1-2 Paris Garden, London, SE1 8ND

Copyright © Legal Benchmarking Limited and its affiliated companies 2026

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

TIGTA exposes faults in operation of electronic payments system

fotoflexer-phototigta.jpg

Business taxpayers in the US were not always told by the IRS when they were in breach of a new federal regulation enabling them to pay their taxes online or by telephone, a report from the Treasury Inspector General for Tax Administration (TIGTA) has found.

The Electronic Federal Tax Payment System (EFTPS), which allows businesses and individuals pay their federal taxes electronically via the internet or telephone 24 hours a day, seven days a week took effect on January 1 2011. And the Internal Revenue Service is supposed to operate the Federal Tax Deposit (FTD) Alert Program to help taxpayers manage their liabilities so they do not become unable to pay mounting debts that arise from their failure to use the electronic payments system in time.

However, while TIGTA found that the IRS had taken the necessary steps to inform businesses about EFTPS . The tax authorities sent an intention letter to 3.8 million taxpayers affected by the change in November 2010 and a mandate letter the following month to 1.4 million who had not yet activated their EFTPS enrolment or were still making deposits by coupon instead of electronically.

But TIGTA found that in a sample of 96 high priority FTD alert cases, revenue officers were often not assigned the alerts promptly and, when they were, did not always make timely contact with the taxpayers concerned.

“I am pleased by the IRS’s action to communicate and educate business taxpayers about this new regulation, but the Service must then ensure that revenue officers contact all business taxpayers about problems in a timely manner, since business taxpayers who are not contacted timely accrue more interest and penalties,” said J Russell George, the Treasury Inspector General for Tax Administration

The IRS said it agreed with, and would implement steps to comply with, TIGTA’s recommendations that it should create rules for timely group manager assignment of FTD Alerts to revenue officers and emphasise to group managers the need to ensure that revenue officers contact business taxpayers within 15 calendar days of FTD Alert assignments.



more across site & shared bottom lb ros

More from across our site

In the first of a two-part series on capital v revenue in R&D, Jayne Stokes explores these key concepts and where UK companies need to tread carefully
Magnus Pantzar is set to join as managing director after spending nearly a decade as EQT’s global head of tax
The OECD’s project was up for debate as Matt Williams spoke to ITR following BDO’s tax strategist survey, which uncovered increased complexity and costs among multinationals
Sponsored by Deloitte
Sameer Nurmohamed, partner, Deloitte Legal Canada
Sponsored by Deloitte
George Ankomah, partner, Tax & Regulatory Services, Deloitte Africa (Ghana)
The recent spree of firm mergers and acquisitions proves that geographic scale is the name of the game
The big four spin-off firm becomes Taxand’s second UK member; in other news, Haynes Boone launched a UK tax practice
Sponsored by Deloitte Luxembourg
Jean-Michel Henry and Mona El-Begawi of Deloitte Luxembourg examine the complexities created by timing differences in Luxembourg, EU, and OECD tax regimes
Stephanie Pantelidaki’s economic expertise will give Norton Rose Fulbright’s other teams ‘extra firepower,’ she says
Sponsored by MFA Legal & Tech
Samuel Fernandes de Almeida of MFA Legal & Tech assesses whether Portugal’s 7.5% surcharge on non-residents aligns with the EU’s free movement of capital principle and passes the proportionality test
Gift this article