EFTPS-Online is designed to allow businesses and individuals to pay all federal taxes through a secure Web site. Before this online payment option was rolled out in September, taxpayers had to either pay via the phone, regular mail, or use modem-to-modem software.

Said Terry Lutes, director of Electronic Tax Administration at the IRS: "Taxpayers can use the Internet to actually schedule and make their payments. Any payment that they make electronically, they can come back on the Web and research the payment." In addition, taxpayers can schedule payments up to a year in advance. Individuals who file quarterly estimated taxes are most likely to benefit from the new system, added Mr Lutes.

Businesses and individuals can enroll for EFTSP-Online via the Internet; after enrollment, users will receive a confirmation kit in the mail with instructions for obtaining an Internet password. A personal identification number is mailed separately to new users for additional security. The EFTPS provides an option for online users of the service to review tax payment history and print out a confirmation of payment.