In response to the decision of the Financial Management Service to discontinue the system that processes federal tax deposit (FTD) coupons, IRS has issued temporary and final regs that require the use of electronic funds transfer (EFT) for all FTDs and eliminate the use of paper-based FTD coupons for all deposits and payments made after December 31, 2010. IRS also provided transitional relief and stated that it wouldn't impose Code Sec. 6556 penalties for FTDs made in 2011 that would have been timely under former rules.