Federal Tax Payment Options
How to pay your taxes or make payment arrangements with the IRS
The IRS has made it much more convenient to pay your income tax bill than ever before. Electronic payments are the most expedient way to pay, rather than the old fashioned check writing route.
Electronic Payment Options
The IRS has made it easier than ever for individuals to pay their income tax bill electronically. Taxpayers who file their taxes through e-file can authorize an electronic debit directly from their checking or savings account when filing their return. They can also authorize payment by credit or debit card. This is the most convenient way to pay, since using an online provider allows the taxpayer to file their return and pay their taxes all in one step. Be careful; once the return is filed, and e-payment cannot be scheduled.
Taxpayers who file a paper return, whether using an online program, home software or the old-fashioned pen-and-paper method, can authorize payment to the IRS over the phone by credit or debit card. Taxpayers who file their returns electronically but do not authorize payment immediately may also pay their taxes this way. This enables taxpayers to file early then make a payment later to delay out-of-pocket expenses.
In either case, the payment amount can include not only the tax amount due but also any penalties and interest. Making the payment electronically also eliminates the need to mail any payment voucher.
Some providers do charge a convenience fee or surcharge for electronic payments. Although this charge is deductible as an expense on the next year's taxes, try to find an online tax preparer that does not charge a separate fee for electronic payments.
Taxpayers can even pay their estimated tax payments through the Electronic Federal Tax Payment System (EFTPS). Once enrolled, individuals can make payments monthly or quarterly, even weekly if they desire. Payments can be made over the phone or via the internet 24 hours a day.
Payment Plans / Installment Agreements
Taxpayers who aren't immediately able to pay their entire tax burden can make arrangements with the IRS to make payments over time. These payment plans or installment agreements will include penalties and interest.
Those who owe $25,000 or less can make arrangements using an Online Payment Agreement. Taxpayers that owe more than $25,000 may still qualify for an installment plan, but may need to complete a Collection Information Statement. A Request for Installment Agreement must be filed to determine eligibility.
The easiest route to paying taxes is to file your return online and pay your taxes electronically by using an online e-file provider. The option is still there to print and mail your return and payment, too, but electronic filing is more convenient.
The IRS has made it much more convenient to pay your income tax bill than ever before. Electronic payments are the most expedient way to pay, rather than the old fashioned check writing route.
Electronic Payment Options
The IRS has made it easier than ever for individuals to pay their income tax bill electronically. Taxpayers who file their taxes through e-file can authorize an electronic debit directly from their checking or savings account when filing their return. They can also authorize payment by credit or debit card. This is the most convenient way to pay, since using an online provider allows the taxpayer to file their return and pay their taxes all in one step. Be careful; once the return is filed, and e-payment cannot be scheduled.
Taxpayers who file a paper return, whether using an online program, home software or the old-fashioned pen-and-paper method, can authorize payment to the IRS over the phone by credit or debit card. Taxpayers who file their returns electronically but do not authorize payment immediately may also pay their taxes this way. This enables taxpayers to file early then make a payment later to delay out-of-pocket expenses.
In either case, the payment amount can include not only the tax amount due but also any penalties and interest. Making the payment electronically also eliminates the need to mail any payment voucher.
Some providers do charge a convenience fee or surcharge for electronic payments. Although this charge is deductible as an expense on the next year's taxes, try to find an online tax preparer that does not charge a separate fee for electronic payments.
Taxpayers can even pay their estimated tax payments through the Electronic Federal Tax Payment System (EFTPS). Once enrolled, individuals can make payments monthly or quarterly, even weekly if they desire. Payments can be made over the phone or via the internet 24 hours a day.
Payment Plans / Installment Agreements
Taxpayers who aren't immediately able to pay their entire tax burden can make arrangements with the IRS to make payments over time. These payment plans or installment agreements will include penalties and interest.
Those who owe $25,000 or less can make arrangements using an Online Payment Agreement. Taxpayers that owe more than $25,000 may still qualify for an installment plan, but may need to complete a Collection Information Statement. A Request for Installment Agreement must be filed to determine eligibility.
The easiest route to paying taxes is to file your return online and pay your taxes electronically by using an online e-file provider. The option is still there to print and mail your return and payment, too, but electronic filing is more convenient.
