How to Make Tax Payments to the IRS
You are able to pay the IRS through a variety of options when it’s time to prepare your tax return. You can do it in person at any of the payment centers, online or by sending a check or money order via the U.S. Postal Service. The IRS typically announces that it will begin accepting tax returns in the first week in January of every year. Understanding how to make your tax payments will help speed the process of filling out your tax return annually. 1. Direct pay You can arrange an electronic transfer of funds from your savings or checking account via Direct Pay on the IRS website when you have funds available to pay what you owe. It is also possible to access Direct Pay on the IRS2Go mobile application. This is the official IRS application available on the Amazon Appstore, Apple App Store, and Google Play. The IRS does not charge processing fees for this choice. It is possible to schedule payments for up to 30 days in advance. You can modify or cancel them within two business days prior to when you’ve scheduled them. 2. Electronic Funds Withdrawal If you’re filing your tax returns electronically using the IRS Free File (the government’s tax preparation software) or another software for tax filing application, or with an expert tax advisor, you can choose to pay using Electronic Funds Withdrawal (EFW), a direct debit from your bank account and you can plan payments up to one calendar year ahead. The IRS does not charge any fees for using EFW However, financial institutions could. 3. Electronic Federal Tax Payment System Another option available to you from the Federal government to assist in paying taxes is one called the Electronic Federal Tax Payment System (EFTPS). As opposed to Direct Pay, unlike with the Direct Pay option, you’ll be required to sign up for EFTPS that requires the tax identification number—either your Social Security number or Employer Identification Number (EIN)—along with a password and PIN. It could take up to five days to complete registration, so make sure you plan ahead. You can make payments for up to a 12 months in advance. EFTPS is completely free. 4. Debit or Credit Card You may be able to pay the IRS via debit or credit card, but you have to choose one of the authorized processors for payments. Three payment processors are available. You can get access to one of them via the IRS website or via the IRS2Go mobile application: All charge an administrative fee that could vary, however, it could be tax deductible, based on your tax circumstances. The typical fee is a flat amount for debit card transactions or a tiny percentage of your transaction if you’re paying with a credit card. The credit card company may be able to charge you interest too. You cannot cancel payments made with a debit or credit card. 5. Pay by Check or Money Order It is possible to send a check to the United States Treasury if you prefer not to use the internet and prefer to pay in a traditional manner. Make sure you include the Social Security number, the tax form number, as well as the year for tax in the memo line of your check. 6. Pay in Person You can make payments at the nearest IRS office in case you’re concerned about scams, hacking, or fraud. Set up an appointment online prior to visiting the office to ensure you don’t need to wait around or return for a different day later. A similar alternative is to go to one of the IRS “retail partners,” one of the more than 7,000 participating retail establishments across the nation which will transfer your payment through the IRS on your behalf. Take a look at this list of participating stores and follow the instructions to pay in person. You can pay cash, by money order or check however, you shouldn’t pick this option if your bill is due on the next day. 7. Pay With a Bank Wire Transfer Banks can arrange the same day wire transfer that is payable to the IRS, however, they typically do not advertise the service. Costs for this service may differ from minimal to substantial which depends on the size of the transfer. 8. IRS installment plan or payment plan If you’re not able to pay the taxes you due, you may make an application for a payment plan through the IRS and sign an agreement that specifies the way you’ll pay taxes over an extended time frame. The short-term plans require that you pay the entire amount within the space of 180 days or less and are only available for those who owe less than $100,000. Long-term payment plans (also known as installment agreements), which offer you a greater timeframe than 180 days and are available when you owe $50,000 or less. 9. IRS2Go mobile app The IRS offers an app that lets you make payments through IRS Direct Pay the IRS2Go. Direct payments can be made through the bank account (for no cost) or use the debit or credit card transaction which is subject to certain fees. The application, which is accessible for iPhone and Android, is also a great tool to check your tax refund status. If You Need an Extension of Time to File Certain taxpayers may discover that they aren’t able to meet the tax deadline. It is possible to request the opportunity to extend your deadline by submitting the form 4868 with the IRS (instead of filing a tax return) prior to the tax deadline. However, any amount you owe is still due on the original tax due date of the year. You’re eligible for a refund if you overpay. However, you’ll be liable to the IRS more when you finish your tax return and discover that you’ve not paid enough for the entire year. Do you need more help? If you are liable for personal income tax, do
