U.S. Rep. Darin LaHood (R-IL) on July 16 proposed a bipartisan bill to apply the so-called mailbox rule to certain payments made through the Electronic Federal Tax Payment System (EFTPS).
“Taxpayers who make payments or file documents through the Treasury Department’s Electronic Federal Tax Payment System shouldn’t face different filing deadlines than those who file by mail,” said Rep. LaHood. “Extending the mailbox rule to electronic payments is commonsense and will provide important parity for taxpayers navigating the tax code.”
The mailbox rule, which is also called the posting rule, is the default rule under contract law for determining the time at which an offer is accepted, according to Cornell Law School, and states that an offer is considered accepted at the time that the acceptance is communicated, whether by mail, e-mail, etc.
Rep. LaHood sponsored H.R. 7641 with original cosponsor U.S. Rep. Suzan DelBene (D-WA) to amend the Internal Revenue Code to allow tax payments scheduled through the U.S. Treasury Department’s EFTPS on or before the due date to be considered timely paid for purposes of the mailbox rule, according to a bill summary provided by Rep. LaHood’s office.
Currently, tax payments paid through EFTPS must be scheduled by 8 p.m. the day before the due date to be considered as received timely by the IRS. If enacted, H.R. 7641 would create parity between electronic payments and mailed-in payments, according to the summary.
Rep. DelBene added that U.S. taxpayers should have one clear deadline to file documents and make required payments. “The IRS should not treat taxpayers who choose to use the Electronic Federal Tax Payment System differently than taxpayers who file by mail,” she said.
The bill has been referred for consideration to the U.S. House Ways and Means Committee.