DO YOU KNOW T2C?

The Electronic Federal Tax Payment System (EFTPS) will be obsolete in a couple of years; The IRS has been working on a new online payment system since October of 2019 and has dubbed the new system “Transforming Tax Collection” otherwise known as T2C.

“T2C is a multi-year initiative designed to modernize electronic tax collections and transform the taxpayer experience through process workflow improvements and the latest technological advancements. T2C will transform the taxpayer experience by offering modern, state-of-the-art features, improved customer service, operations and enhanced safeguards. It is scheduled to replace the current Electronic Federal Tax Payment System (EFTPS) used by individual taxpayers, businesses and operators.”

The current EFTPS system is supported by a financial agent (or a bank). The IRS is moving the online payment system to a fiscal agent (the federal reserve). Therefore, it is not feasible to incrementally replace the current system. The transition strategy is currently a work in process with bulk providers tentatively scheduled to move to the new payment system by the end of 2023. All other users of the EFTPS are to be transitioned over by 2025 when the current EFTPS site will be discontinued.

All users of the current EFTPS site will be notified of the changes through EFTPS and irs.gov/payments. As the new T2C program uses a different verification system all users will need to re-enroll when the new program comes online.

“The T2C team continues research opportunities with users in order to design an experience that fits their needs and meets expectations which includes:

• Need for a single source of data for transparency & accuracy
• Improvements in automation & reduction in time to task completion
• Improved, flexible access to complete tasks anytime, anywhere
• Ability to personalize the experience and self-service issues
• Improved communication, notifications, and support options”

DirectPay for individuals will not be impacted by this change and will still be available for the payment of taxes which does not require a registration process.
If you are interested in providing feedback for this project by being a member of the T2C User Council, contact either for more information:
Becky Bristol, Federal Reserve Bank of Cleveland, Becky.Bristol@clev.frb.org, or
Shannon Koppers, Bureau of the Fiscal Service, Shannon.Koppers@fiscal.treasury.gov