The following table shows when the electronic payment requirement first applies for various business taxes. Electronic payments required if business had at least: Alcoholic beverage tax $10,000 in tax Cigarette and tobacco tax $10,000 in tax Corporation franchise tax $10,000 in estimated tax payments Corporation franchise for nonprofits $10,000 in tax Fiduciary income tax 100 trusts Insurance premium taxes $10,000 in tax Lawful gambling tax $10,000 in tax Metropolitan landfill fee $10,000 in tax MinnesotaCare taxes $10,000 in tax Petroleum tax All electronic Sales and use taxes $10,000 in tax Withholding tax $10,000 in tax In other words, if a business collects more than $120,000 in sales taxes annually, but its only other tax is $10,000 in employee withholding taxes, both the sales tax and the withholding taxes must be paid electronically. For this purpose, the Minnesota Department of Revenue measures the tax collected or owed for the period from July 1 to June 30 of the following year, not the calendar year. Any business exceeding one of the above thresholds is notified by a letter from the Minnesota Department of Revenue in the November following the end of the measuring period. The letter will indicate that as of the next January 1 all of that business’s taxes must be filed electronically. See e-Services, Minnesota Department of Revenue’s electronic file and pay system. Electronic Payment Requirements - Federal For federal tax purposes, many businesses will be required to file tax payments electronically, through the Electronic Federal Tax Payment System (EFTPS ) . See the section of this Guide titled “Business Taxes – Income Tax Withholding – Withholding Tax Deposit and Filing Requirements”. Certain mid-sized corporations, with assets between $10 million and $50 million, are required to e-file their Forms 1120 or 1120S for tax years ending on or after December 31, 2006. Large corporations with assets of $50 million or more were required to start e-filing with their 2005 Forms 1120 or 1120S. Corporations required to e-file are those that meet the asset threshold and that file 250 or more federal returns a year, including excise tax, employment tax and information returns such as Forms W-2 and 1099. Refer to the IRS information, E-file for Business and Self-Employed Taxpayers.
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