The Electronic Federal Tax Payment System (EFTPS) is the US Treasury’s primary tool for reducing the administrative costs and delays in processing business tax payments. All new businesses are pre-enrolled in this service, and most existing businesses have begun receiving notices that signal the end of antiquated payment coupons. In this newsletter we will give you a brief primer and show you how to take advantage of this tool.

One of the best features of EFTPS is the ability to pay several different types of tax with the system. While payroll tax payments are the most obvious use, it can also accept estimated income tax, federal unemployment tax, heavy vehicle use tax, withholding taxes for foreign controlled corporations and many others.

Below is a list of the steps needed to complete enrollment in the EFTPS system. My enrollment took about five minutes and is typical of what most businesses can expect.

1. Gather your FEIN, a blank or cancelled check from the account you will use to make payments, and the contact information you used to obtain your FEIN from IRS.
2. Visit the EFTPS web site at www.EFTPS.gov and follow the instructions under the “Enrollment” section.
3. As you move through the various screens most items are self explanatory. There is a section where you may wish to insert limits for various tax payments. This is a good idea, but most businesses will only use two or three different types of payments so don’t worry if several of the options are unfamiliar to you.
4. When your enrollment is finished you will get to an acknowledgement page. Print this out and keep it for your records.
5. About two weeks after completing your online enrollment you will receive a package in the mail containing your PIN and instructions on finalizing your enrollment.
6. Now, instead of going to the bank, logon to EFTPS and make your payment. If you are uncomfortable with the system ask someone from your accountant’s office to walk through the first transaction with you. If your accountant has remote access capabilities (see article below) you may not even have to make a trip or schedule an on-site appointment.

If you are interested in EFTPS, have had problems in the past, or just want some more information give us a call and we will help you start using this time saving and convenient service.

December will be a busy month as we meet with proactive clients to put together some final end-of-year tax strategies for 2005. Once December 31st passes many individuals and business owners adopt a more passive approach and wait for the accountant to see them through the mid-March and April tax deadlines. In this article we will show you how a pre-tax season session with your CPA can shave weeks off your 2005 tax filing allowing you more time to focus on the year ahead.

All CPA’s have what is called a PBC list. PBC stands for “Prepared By Client” and includes things such as your trial balance, bank reconciliation, aging reports, fixed asset purchases, etc. This is the starting line for preparing your tax return. However, even with the best list there will be gaps between what gets provided and what the CPA needs to finish the return. This leads to the second type of list you will receive, the “Open Items” list.

Open Items mean the ball is back in your court. In the course of going through your books and records there will invariably be questions and requests for clarification from your CPA. How quickly these items get resolved is up to both of you. These questions need a quick response before the issue grows cold and the CPA loses the context of the inquiry. Just as important, your responses need a quick review by the CPA to tell you if the question has been answered or if more information is needed. Weeks and months are often lost to orphaned open items.

Here is how to make PBC and Open Items lists work for you instead of against you. Schedule an appointment with your CPA during the final weeks of December or the first couple of weeks of January. Your agenda will include a review of the PBC list so you can decide which items can be provided immediately and which ones will have to wait (inventory counts, bank statements, etc). At this time you will also commit to a delivery date for these items and your CPA will commit to a deadline for reviewing your responses so that any follow-up can happen promptly. Finally, you will set a target date for supplying items that are not currently available such as that year-end bank statement and cash reconciliation.

The timing of this meeting is important since you need to provide for holiday absences. Also keep in mind that you are better off if you get on the calendar before tax season begins in earnest.

You have only 20 minutes before your meeting with the bank and you cannot remember how to get that last report out of Quickbooks. You could call tech support, but the meeting will be over before you get to a live person. You could call your CPA but it's always hard trying to describe your computer screen over the phone.

If this sounds familiar we can help. Axiom uses technology extensively to improve its service to clients. Over the last few months we have been using a tool that allows us to view your computer desktop, interact with your applications, even manipulate your mouse and keyboard to show you how to accomplish tasks in real time. Here is the way the service works.

• You let us know about your problem and we send you an email with a special link in it. We will usually contact you by phone at this point so we can discuss what is happening in real time. For the service to work efficiently you need a broadband internet connection (cable, DSL, wireless broadband, or T1).
• You click on the link to join a remote web workplace we have setup to address your problem. Sometimes clients must download an Active X control when they use the service for the first time. The download is very quick and only involves giving your web browser permission to install the plug-in.
• Once the connection is established you grant Axiom permission to view or control what is happening on your computer. Your screen returns to normal and we help you address whatever problems you are having. During the process we see what you see.
• After your problem has been addressed the session terminates and all links and permissions are reset.

The next time you are experiencing a tough computer problem think about scheduling a remote access appointment rather than waiting on the phone or travelling across town.

Axiom Professional Group and MKM Management Services Ltd. are pleased to announce a new strategic partnership. Winnipeg based MKM is a provider of tax, accounting, management and consulting services to individuals and businesses in Canada and abroad. Jeanne Krahn Matthewson, a principal with MKM, is a Canadian Chartered Accountant specializing in individual and business tax compliance for Canadians. Her husband Mark Matthewson, CA has extensive experience managing corporate finance, accounting and IT functions.

Together MKM and Axiom provide a better experience for Canadians required to comply with both US and Canada tax laws. Additionally, both Axiom and MKM have experience assisting businesses with cross border transactions and tax compliance. If you are a Canadian citizen with US tax issues or a US citizen or resident required to comply with Canada law call us to discuss how we can be of assistance.