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August 9, 2007

Illinois Department of Revenue collects millions from Illinois businesses through new federal/state online payment system
Pilot program proves more convenient for employers to pay withholding taxes

SPRINGFIELD – Illinois employers have flocked to a pilot program that allows them to pay, without charge, both their federal and state withholding taxes using an online federal payment system, Illinois Department of Revenue Director (IDOR) Brian Hamer announced today.  Illinois was the only state chosen by the U.S. Department of Treasury in 2006 to test the Electronic Federal Tax Payment System (EFTPS).  Since IDOR launched the program in December, more than 105,000 state withholding tax payments for more than $225 million have been collected.  

“This pilot program has already proved successful in meeting the Department of Revenue’s top goal, to increase voluntary compliance by making it as easy as possible for taxpayers to meet their tax obligations,” said Director Hamer.  “In the past businesses had to go through two different processes to pay their withholding tax for the state and federal government. With the streamlined approach now it’s easy – when you make a federal payment, you can make the state payment at the same time, and you’ll never be late.”

The benefits of the free EFTPS program to Illinois employers include:

• Confidence - Taxpayers receive immediate confirmation that instruction for a payment was received.
• Accuracy – EFTPS users are less likely to be assessed a penalty for errors or late payments than non-EFTPS users.
• Convenience – EFTPS is available 24 hours a day, year-round, and live customer representatives are available to answer questions.
• Control - EFTPS allows taxpayers to plan ahead and schedule the exact time they wish to make payments.

For more information or to enroll in EFTPS, please visit www.eftps.com or call the Department of Revenue at 217.785.1514.



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