How to Pay Taxes

Your taxes are prepared and OUCH – you owe.  Were you aware that there are several payment options available where taxpayers can pay immediately or arrange to pay in installments? Taxpayers can pay online, by phone, or with their mobile device and the IRS2Go app. Taxpayers should pay in full whenever possible to avoid interest and penalty charges.

Here are some electronic payment options offered by the IRS for taxpayers:

  • Electronic Funds Withdrawal. Taxpayers can pay using their bank account when e-filing. EFW is free and only available through e-File.
  • Direct Pay. Taxpayers can pay directly from a checking or savings account for free with IRS Direct Pay. Instant confirmation is received after a payment is submitted. With Direct Pay, payments can be scheduled up to 30 days in advance. Changes or cancellations of payments can be made two business days before the scheduled payment date. Taxpayers can choose to receive email notifications each time they make a payment.
  • Credit or debit cards. Taxpayers can also pay their taxes by debit or credit card online, by phone, or with a mobile device. Card payment processing fees vary by service provider and no part of the service fee goes to the IRS. Telephone numbers for service providers are at IRS.gov/payments.
  • Pay with cash. Taxpayers can make a cash payment at a participating retail partner. Taxpayers can do this at more than 7,000 locations nationwide. Taxpayers can visit IRS.gov/paywithcash for instructions on how to pay with cash.
  • Installment agreement. Taxpayers who are unable to pay their tax debt immediately may be able to make monthly payments. Before applying for any payment agreement, taxpayers must file all required tax returns.  We will discuss this next week.

Anyone wishing to use a mobile device should remember they can access the IRS2Go app to pay with either Direct Pay or by debit or credit card. IRS2Go is the official mobile app of the IRS and is available for download from Google Play, the Apple App Store or the Amazon App Store.

Taxpayers can also visit IRS.gov/account and log in to their account. From here, they can view their taxes owed, payment history, federal tax records, and key information from their most recent tax return as originally filed.

PLEASE NOTE:  The options offered by the IRS may not be available at the state level.  You should check your state’s taxation website for further information on payment options.

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Kay Sowa

About the Author

Kay Sowa is a paralegal in the Trusts and Estates Group at Capehart & Scatchard, P.A. She is an IRS Enrolled Agent as well as a Certified Trust and Financial Advisor. She oversees the trust and estate administration practice for the firm. She is an accomplished author and lecturer who has frequently spoken on behalf of a number of organizations including the National Business Institute and the Institute of Paralegal Education.

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