Payment of Tax Due

The requirements for payment of tax depend on whether the foreign corporation has an office or place of business in the United States.

Foreign corporations that do not maintain an office or place of business in the United States must generally pay any tax due (page 1, line 7) in full no later than the 15th day of the 6th month after the end of the tax year. However, see the instructions for line 7, later. If the foreign corporation files Form 1120-F electronically, it may pay the tax due by initiating an electronic funds withdrawal (direct debit). It does so by checking the box on Part II, line C, of Form 8453-CORP, E-file Declaration for Corporations. If the foreign corporation does not file Form 1120-F electronically, or if it files Form 1120-F electronically and does not choose the direct debit option, the foreign corporation may use the Electronic Federal Tax Payment System (EFTPS) to pay the tax due if it has a U.S. bank account. If the foreign corporation does not have a U.S. bank account, it may arrange for its financial institution to initiate a same-day payment on its behalf or it can arrange for either a qualified intermediary, tax professional, payroll service, or other trusted third party to make a deposit on its behalf using a master account. In addition, the foreign corporation still has the option to pay by check or money order, payable to “United States Treasury.” To help ensure proper crediting, write the corporation’s EIN, “Form 1120-F,” and the tax period to which the payment applies on the check or money order. Enclose the payment when the corporation files Form 1120-F.

Foreign corporations that do maintain an office or place of business in the United States must generally pay any tax due (page 1, line 7) in full no later than the due date for filing Form 1120-F (not including extensions). See When To File, earlier, for this due date. However, see Regulations section 1.6081-5 for an exception. Also, see the instructions for line 7, later. If the foreign corporation files Form 1120-F electronically, it may pay the tax due by initiating an electronic funds withdrawal (direct debit). It does so by checking the box on Part II, line C, of Form 8453-CORP. If the foreign corporation does not file Form 1120-F electronically, or if it files Form 1120-F electronically and does not choose the direct debit option, the tax may be paid as follows. The foreign corporation may pay the tax using EFTPS or it can arrange for its tax professional, financial institution, payroll service, or other trusted third party to make deposits on its behalf. In addition, the foreign corporation also has the option to arrange for its financial institution to initiate a same-day payment.

Note: If the due date falls on a Saturday, Sunday, or legal holiday, the payment is due on the next day that isn’t a Saturday, Sunday, or legal holiday.

Electronic deposit requirement. Foreign corporations with an office or place of business in the United States must use electronic funds transfer (EFT) to make all federal tax deposits (such as deposits of employment, excise, and corporate income tax). An EFT can be made using EFTPS. However, if the corporation does not want to use EFTPS, it can arrange for its tax professional, financial institution, payroll service, or other trusted third party to make deposits on its behalf. Also, it may arrange for its financial institution to submit a same-day payment (discussed below) on its behalf. EFTPS is a free service provided by the Department of the Treasury. Services provided by a tax professional, financial institution, payroll service, or other third party may have a fee.

To get more information about EFTPS or to enroll in EFTPS, visit EFTPS.gov or call 800-555-4477 (TTY/TDD 800-733-4829).

Depositing on time. EFTPS accepts same day payments of $1 million or less if the payment is submitted before 3:00 p.m. Eastern time on a business day. If the corporation’s payment is more than $1 million, the corporation must submit the deposit by 8:00 p.m. Eastern time the day before the date the deposit is due. If the corporation uses a third party to make deposits on its behalf, they may have different cutoff times.

Same-day wire payment option. If the corporation fails to submit a deposit transaction on EFTPS timely, it can still make the deposit on time by using the Federal Tax Collection Service (FTCS). To use the same-day wire payment method, the corporation will need to make arrangements with its financial institution ahead of time regarding availability, deadlines, and costs. Financial institutions may charge a fee for payments made this way. To learn more about the information the corporation will need to provide to its financial institution to make a same-day wire payment, go to IRS.gov/SameDayWire .