EFTPS - Financial Management Service - Department of the Treasury

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and concern about the security of personal information.Tax professionals were more aware of EFTPS, butsome lacked understanding of how to use the system.They expressed concerns about the enrollment processand their clients’ ability to pay taxes online.Tax professionals are important catalysts toincreasing EFTPS usage. Nearly all of the tax professionalsparticipating in the ASLs indicated that theymake tax payment recommendations to their clients,and most individuals and small businesspersons indicatedthat they use tax professionals. Tax professionalsconsider the relationships with their clients to bevery important. Those who believe EFTPS providesvaluable benefits to their clients are inclined to recommendthe service.The impact of float on cash flow is an importantconsideration of those representing smallbusinesses. Many realize the float advantage towriting a check, and this period of float is part of theircash flow management. Small-business respondentswere also concerned about payment verification,which they felt was provided by a canceled check.Individuals are primarily concerned about verificationof payment and security of personalinformation, and small businesses share this concern.Verification of payment includes confirmationthat the payment has been made and was debited fromthe bank account. In addition, some kind of proof ofpayment was considered important in case of a disputewith the IRS. To date, the canceled check has satisfiedthese concerns and provided a sense of control overthe tax payment process. Some form of proxy for thecheck, such as a printable receipt, was likely to alleviatethis concern. Individuals are also concerned about thesecurity of their personal communication and onlineinformation, as well as who at the IRS has access totheir information.4
QUANTITATIVE STUDYMETHODOLOGYThe quantitative phase of the EFTPS research studywas a nationwide telephone survey of tax professionals,individuals and those representing small businesses.The surveys were conducted in early 2004 with 1,500randomly selected people from key audience groups.The average interview length was 20 minutes.PARTICIPANT CRITERIATax professionals: 500 participants• File at least 25 returns per year• CPAs, accountants, tax accountants, tax preparers• Mix of firm sizes (excluding the six largestaccounting/tax preparation firms)• Client base of individuals and small businessesSmall businesses: 600 participants• Annual tax liability of $2,500 to $200,000• Decision-maker on how taxes are paid forthe business• File taxes under an Employer IdentificationNumber• Mix of industries• Mix included minority- and women-ownedbusinesses• 25 percent were already enrolled in EFTPSIndividuals: 400 participants• Must make at least two estimated tax paymentsper year• Primary or joint decision-maker on how taxes arepaid for the household• Includes individual taxpayers and those who file asa sole proprietor, S corporation or partnership• Mix of ages, occupations and demographicsThe error due to sampling at the 95 percent confidencelevel is +/- 4.9 percentage points for the individualsgroup, +/- 4.4 percentage points for the taxprofessional group and +/- 4.0 percentage points forthe small business group.RESEARCH OBJECTIVESBuilding on the results of the ASL sessions, this studywas designed to:• quantify the levels of awareness and familiarity;• measure reactions to proposed initiatives to increaseEFTPS usage;• measure the prevalence of barriers identified;• more fully understand the role of taxprofessionals and other influencers of the taxpayment method;• explore the role and perception of the IRS; and• assess the overall favorability of EFTPS across thetarget audience.KEY FINDINGSFamiliarity with, and Favorability toward, EFTPSUnprompted awareness is low among all groups.The survey revealed a need to build awareness and5
Page 1 and 2: EFTPSElectronic Federal Tax Payment
Page 3 and 4: INTRODUCTIONBACKGROUNDThe Electroni
Page 5: QUALITATIVE STUDYMETHODOLOGYThe qua
Page 9 and 10: The Role of Tax Professionals in Ma
Page 11: SUMMARY ANDCONCLUSIONSClearly, EFTP

EFTPS - Financial Management Service - Department of the Treasury

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