What Are Your Tax Payment Options?

If you are an individual taxpayer, the best way for you to pay federal taxes is electronically through the IRS’ Payment web page or IRS2Go mobile app. Paying electronically is a convenient way to make tax payments online, by phone, or from a mobile device. Paying electronically is safe and secure as the IRS uses the latest encryption technology. When you use any of the IRS ePay options, it puts you in control of paying your tax bill. You can schedule your payment in advance, and you will receive confirmation after it’s submitted.

At the IRS’ Payments web page, the “Direct Pay” is a secure service you can use to pay your current and prior year 1040 series tax returns and more. Pay directly from your checking or savings account at no cost to you. After you complete five easy steps you’ll receive instant confirmation that your payment has been submitted. With Direct Pay, you can use the “Look Up a Payment” feature to view your payment status. You can modify or cancel your payment there until two business days before your scheduled payment date.

At the IRS’ Payments web page, you can also choose to pay with your credit card, debit card or digital wallet. Your payment though will be processed by a payment processor who will charge a processing fee. Also, not all IRS tax forms are eligible for payment by credit or debit card. Moreover, there are limits on how often you can make individual and business payments and you usually can’t cancel payments. If you choose this option, your tax payment will be reflected in your card statement as ‘United States Treasury Tax Payment’ and the convenience fee paid to your provider will be listed as ‘Tax Payment Convenience Fee’ or something similar.

If you are filing your tax return electronically, you can choose to pay through the electronic debit of your bank account using the Electronic Funds Withdrawal (EFW) option. The EFW is an integrated e-file/e-pay option that is available only if you file your federal taxes using tax preparation software or through a tax professional. Using this payment option, you may submit one or more payment requests for direct debit from your designated bank account. Of course, you will need to know your account number and your financial institution’s routing number.

Other payment options include same-day wire funds transfer as well as through check and money order. Be sure that you make your check or money order payable to the United States Treasury, and that you annotate on the front of your payment your correct name, address, social security number, daytime telephone number, tax year, and form number.

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