The IRS has issued proposed regulations eliminating the rules for making federal tax deposits by paper coupon. The paper coupon system will no longer be maintained by the Treasury Department after December 31, 2010. The regulations are consistent with a Financial Management Service initiative announced in April to increase the use of electronic transactions between taxpayers and the federal government.

The proposed regulations, REG 153340-09, generally maintain existing rules for depositing federal taxes through the Electronic Federal Tax Payment System (EFTPS).

The full text of the regulations is available on NATP’s website.