WorldWide Drilling Resource

52 JANUARY 2015 WorldWide Drilling Resource ® Drilling Into Money Not Boring by Mark E. Battersby Going Electronic with Filing and Records While it is only some large business- es which are required to file government forms and reports electronically, the number of businesses filing their taxes electronically jumped almost 10% to more than seven million. Is your drilling operation taking full advantage of the IRS’s (Internal Revenue Service) e-File program - or the many other government programs that accept or, in some cases, demand electronic filing? There is for instance, EFAST2, an all-electronic system designed by the Department of Labor, Internal Revenue Service, and Pension Benefit Guaranty Corporation to simplify and expedite the reports and disclosures required for em- ployee benefit plans under the Employee Retirement Income Security Act (ERISA). The Social Security Administration’s Social Security Number Verification Service will electronically verify the names and social security numbers of employ- ees before an employer submits Form W-2s. The U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCen) now requires electronic filing of many key reports, such as the often- overlooked reporting of transactions or series of transactions exceeding $10,000. In addition to the e-File program for tax returns, the IRS offers various options for the electronic payment of federal taxes and user fees. The Electronic Federal Tax Payment System (EFTPS) is a free service offered by theTreasuryDepartment which allows millions of businesses, in- dividuals, organizations, tax professionals, and payroll services to pay all federal taxes. EFTPS must be used for all federal tax deposits, including deposits of em- ployment taxes, corporate income and estimated taxes, and the taxes on the unrelated income of tax-exempt organ- izations. Employers are required to de- posit all employment taxes electronically through EFTPS; and employers who do not are subject to a 10% penalty. Those drilling contractors and busi- nesses which are subject to excise taxes for their use of large highway vehicles, or refunds because of their vehicles’ off-highway use, can take advantage of unique Excise Tax e-File & Compliance (ETEC) Programs. The ETEC program was initiated to satisfy the IRS's requirement for electronically filing Form 2290, Heavy Highway Vehicle Use Tax Return. Both Form 720, Quarterly Federal Excise Tax Return and Form 2290, Heavy Highway Vehicle Use Tax Returns can be filed electronically. Form 8849, Claim For Refund of Excise Taxes Return is available for optional electronic filing. Seeking professional advice and guidance might reveal the amazing sav- ings potential of electronic filing and bring the drilling business into compliance before it becomes mandatory. Mark Mark E. Battersby may be contact- ed via e-mail at michele@ worldwidedrillingresource.com 5"5*0/"3: 03 ):%3"6-*$ 48*/( +*# 8*5) ):%3"6-*$ &95&/4*0/ = 6#& 5:-& "45 > > 530,& *-5 065 03 45"5*0/"3: 501)&"% 80 8": $3044 501)&"% 4-*%& 6450.*;*/( 05)&3 015*0/4 0#5"*/"#-& )0*$& 0' .6% 16.14 6450. #6*-5 01&3"503 45"5*0/ /#0"3% "*3 $0.13&4403 :%3"6-*$ %3*7&/ $'. 14* 45% *( 1"*/5&% 50 $6450.&3 41&$4 365& *3 05"3: )& 64 &$) 365& *4 " (3&"5 "-- "306/% 3*( !& $"/ $6450.*;& :063 3*( 8*5) 015*0/4 46$) "4 " #0550. 5"#-& %3*7& "/(-& %3*--*/( .6% 1*5 4:45&. $"4*/( )"..&3 "55"$).&/5 30% 41*//&3 $"3064&- 03 30% #09 !*5) 063 %6"- 41*/%-& )&"% :06 $"/ 48*5$) '30. 305"3: 50 $03*/( 8*5) 5)& 506$) 0' " #6550/ 0/ 5)& $0/40-& )& 365& 4&3*&4 *4 *%&"- '03 "6(&3 %3*--*/( 8*5) *54 )*() 50326& $"1"#*-*5: !& "5 64 &$) 8*-- $64 50.*;& 5)& 3*( 50 :063 41&$*'*$"5*0/4 0/5"$5 64 50%": 50 (&5 :063 /&8 3*( 3&"%: */$0-/ 53&&5 ! 09 < & "34 08" < "9 888 (641&$) $0. -*%& 065 #0550. 5"#-& %3*7& &"7: %65: "-6.*/6. 01&3"503 45"/%4