If you’re an Australian with business interests in the United States, or you’re managing US tax obligations as an expat, the Electronic Federal Tax Payment System (EFTPS) is a name you need to know. With cross-border finance becoming more common, and the IRS tightening compliance in 2025, understanding EFTPS is essential for staying on the right side of US tax law—no matter which hemisphere you call home.
What is EFTPS and Who Needs It?
The Electronic Federal Tax Payment System (EFTPS) is the US Treasury’s secure online platform for paying federal taxes. It’s available 24/7 and is free for anyone required to pay US federal taxes—businesses, individuals, and even foreign nationals with US tax obligations. EFTPS has become especially relevant for Australians who own US property, hold green cards, or operate cross-border businesses, thanks to the US–Australia tax treaty and the rise in remote work arrangements.
- Fast, paperless payments: Send payments directly from your Australian bank to the IRS with minimal paperwork.
- Real-time tracking: Monitor your payment history and schedule future payments in advance.
- Security: Multi-factor authentication and encryption protect your sensitive data—an upgrade in 2025 after a spate of global tax scams.
Even if you file taxes via an accountant or software, EFTPS is often the required method for settling your US tax bill, especially for business owners and self-managed super funds (SMSFs) with US holdings.
Key 2025 Updates: What Australians Need to Know
2025 has brought a series of changes that make EFTPS more crucial and more accessible for Australians:
- Mandatory digital payments: The IRS now requires most international payments—including estimated taxes and business payroll—to be made electronically via EFTPS, ending exceptions for paper cheques from abroad.
- Faster ACH processing: EFTPS now supports same-day ACH transfers, reducing the risk of late payment penalties for Australians dealing with time zone lags.
- Improved international support: The IRS has expanded its helpline hours and added a dedicated support channel for non-US residents, recognising the growing number of Australians using EFTPS.
For example, an Australian tech entrepreneur with a Delaware LLC can now pay quarterly estimated taxes directly from their Australian business account, avoiding the fees and delays of wire transfers or international cheques. Similarly, property investors renting out US real estate can schedule annual or quarterly tax payments in advance, minimising compliance headaches.
How to Register and Use EFTPS from Australia
Registering for EFTPS from outside the US is straightforward, but there are a few extra steps for Australians:
- Obtain a US Taxpayer Identification Number (TIN): Australians with US tax obligations must have an ITIN or EIN. Applying from abroad can take several weeks, so plan ahead.
- Register on the EFTPS website: Go to eftps.gov and complete the online registration. Enter your US address or, if none, your Australian address in the international format.
- Receive your PIN by mail: The IRS mails a PIN code to your registered address. Allow extra time for international post—typically 2-3 weeks to Australia.
- Activate and make payments: Once activated, link your Australian or US bank account (some banks may require intermediary US accounts for ACH transfers). Schedule, track, and confirm payments through the EFTPS dashboard.
Pro tip: The IRS recommends scheduling payments at least one business day before the due date, especially when transferring from non-US banks. EFTPS also lets you set up recurring payments—ideal for quarterly estimated taxes or business payroll.
Security, Compliance, and Common Pitfalls in 2025
With cybercrime targeting international taxpayers, EFTPS has rolled out new security protocols in 2025:
- Multi-factor authentication: Login now requires a secure code sent to your mobile or email.
- Fraud monitoring: EFTPS actively flags suspicious logins and payment patterns, alerting users and freezing accounts if needed.
- 24/7 support for account recovery: Dedicated help for non-residents facing access issues due to time zones or travel.
Common mistakes Australians make include entering the wrong payment type (e.g., applying a payment to the wrong tax year) or missing the registration window for new entities. In 2025, the IRS has simplified the payment categorisation screens, but it’s still essential to double-check all payment details before submitting.
Conclusion: Embrace EFTPS for Simpler, Safer Cross-Border Tax Payments
As cross-border tax compliance grows more complex, EFTPS is the IRS’s answer for a smoother, safer, and more transparent tax payment experience. For Australians with US tax responsibilities, learning to use EFTPS is no longer optional. With 2025’s upgrades to security, support, and speed, now’s the time to get registered and take charge of your US tax payments—without the hassle of paperwork or international banking headaches.
