For the past week, I’ve been trying to figure out the very complicated, nonprofit tax world.  I absorbed everything I could get my hands on from employer books, IRS publications, and even a NOLO “How to Start a Non-Profit” book.  But in the end, it all makes sense!  Taxes are really a complex system of fees and rates to balance all the different parts of our economy. Seeing the world from the business side is truly an eye opener.

However, amongst all my revelations, I discovered that there is a paperless solution even in taxes!  Blame my inexperience, but to me, this deserved extra recognition. A few registration forms later, I enrolled in electronic payment for federal and state taxes.  And to take it a few steps further, I also enrolled into an electronic payment system for seller’s taxes!  Instead of mailing out payments which can take forever, electronic payments can be made a day or two beforehand.

Another benefit to taking the paperless route is the ability of online forms to double check your work. According to the IRS (if my memory serves me right) 1 out of every 7 federal tax deposit using form 8109 is filed incorrectly and thus not filed. The EFTPS online forms will make sure everything is complete before you can submit it. In fact, if you are depositing over $200,000 in federal taxes, using the EFTPS service is required otherwise you may be subject to a 10% penalty.

To most people, filing taxes are either completed by employers, or by a service provider. But if you are in a position to make the decision, I strongly recommend making the transition to electronic payments for environmental reasons or simply for convenience. Here is a quick breakdown of the three tax payment entities: (1) EFTPS.gov – Federal Taxes, (2) EDD – California Taxes, (3) BOE – Sellers Tax. Since Tech Go Green is trying to advocate green practices, it doesn’t hurt to practice what we preach!