Which payment method is not allowed for federal tax deposits?

Study for the AIPB Mastering Payroll Exam. Review flashcards and questions with explanations. Prepare effectively and boost your confidence!

Federal tax deposits can only be made using specific methods that are established by the IRS to ensure efficient and secure processing. Among the options available, a debit card is not recognized as an acceptable method for making federal tax deposits. The preferred methods include checks, money orders, and electronic methods such as electronic funds withdrawal.

Checks and money orders are traditional forms of payment that have been utilized for many years, allowing taxpayers to send their payments directly to the IRS by mail. Electronic funds withdrawal is a method that allows taxpayers to authorize a direct debit from their bank account when filing their tax returns.

In contrast, debit cards do not provide the same level of straightforward, secure handling of federal tax deposits, which is why they are not permitted. Understanding these designated methods ensures compliance with IRS regulations and helps in avoiding any penalties related to improper payment methods.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy