The IRS features several ways for making tax payment convenient and prompt for taxpayers. Learn more about these payment methods and choose the one that is most convenient for you.
1. IRS Direct Pay
For the convenience of taxpayers, the IRS has provided a designated payment option on the IRS website. The IRS Direct Pay is swift and doesn’t cost any bank fees. Simply verify your identity and bank information, and you can authorize the system to debit the due amount from your US bank account.
There are some limitations to this system, however. You’re not allowed to make two payments on the same day. The processing time for the payment is also up to two days.
2. Wire Transfer
The wire transfer method is very reliable and processes payments within the same day. If you need to pay the tax money urgently, this is the best method to go for. Although you’ll have to pay a transfer fee of USD 25 per transaction, it may well be worth it. You might end up paying a heavy penalty if your taxes are paid later than the due date. There’s no way to modify or cancel the payment once the request is processed.
3. Debit Card Payment
The IRS website provides links to three independent payment gateway service providers. At the payment gateway page you’ll be prompted to choose your payment method and you can opt for debit card payment.
As directed, feed in the card details and your PIN. You can use VISA, Mastercard, American Express Card, Paypal etc. to process the payment.
Like most debit card payments, you’ll have to pay a standard processing fee for the transaction.
4. Credit Card Payment
For paying your taxes through a Credit Card, you’ll have to follow the same process as debit card payment. Just make sure that you select the credit card payment option on the payment gateway page. You’ll be charged as standard processing fee.
5. Mobile App
Keeping up with the times of smartphone technology, the IRS has launched its dedicated app – the IRS2Go. It provides access to the basic tax payment methods like IRS Direct Pay, credit and debit card payments through the official mobile app.
It’s quick and convenient for those taxpayers who are not comfortable using an internet browser on the phone or laptop. The app also gives helpful information on tax topics and software troubleshooting assistance.
6. Electronic Federal Tax Payment System
The Electronic Federal Tax Payment (EFTP) system is similar to the IRS Direct Pay system. You get a few more advantages over Direct Pay, like same day payment processing and paying business taxes. You also have the option to modify or cancel your payment within two days from the date of payment.
The set up and registration for EFTP is slightly more complex than the Direct Pay method. You need to register with email and password, and it may take about a week to get your account activated.
If you need assistance to register with the EFTP system, go to Google and search for the following -“IRS Tax Attorney Near Me“.
7. Check or money order
The traditional ways of paying your taxes is still acceptable with the IRS office. You can draw a check in the name of the U.S. Treasury and mail it to the IRS office, well ahead of the payment deadline. Make sure you’ve included details like your name, identification number, contact details etc. so that the payment can be linked to your ID at the IRS office. If you don’t have a bank account, you have the option to send a money order or cashier’s check.
If you want to pay the tax money in cash to the IRS, you’ll have to reach out to them personally. Go to the IRS website PayNearMe and request to locate the office nearest to your location. You’ll be notified of the address through email once the verification for your ID is done. You’ll get a receipt and payment confirmation at the payment counter.
9. Payments in installments
The Government understands that it may not be possible for some citizens to make full payment of their due taxes in one go. It allows taxpayers to select a payment plan to pay the taxes in installments, short-term or long-term. Most taxpayers are eligible for this facility and can sign-up for it online.