Payment Options – Federal Tax Payments

 
 
 

While the surety of owing taxes has not changed, how you pay the tax is becoming easier. Many taxpayers are under the impression that mailing in a check or electronically withdrawing funds when the return is filed are the only option, but there are many more! Below is a brief list of the different payment methods offered by the IRS and key takeaways of each option.

Individual Tax Payments:

Direct Pay

  • Directly pay from savings or checking account without fees
  • Receive email confirmation once payment is complete and review payment history through an online account
  • Modify or cancel payment up to two business days before scheduled payment date
  • Available Monday to Saturday: Midnight to 11:45 PM and Sundays from 7 AM to 11:45 PM
  • Can be used with IRS2Go mobile app
  • Restrictions: Limit to two payments within a 24-hour period and payment amounts cannot exceed $10 million
  • IRS Direct Pay Home Page
Business and Individual Tax Payments:

Debit or Credit Card

  • Pay taxes through internet, phone, or mobile device
  • Fees depend on the payment processor
  • Payments over $100,000 may require coordination with credit provider
  • Can be used with IRS2Go mobile app
  • Restrictions: Not all tax forms are available for card payments such as federal tax deposits, canceling payments is unavailable, and limits on how often you can make individual and business tax payments apply
  • IRS Credit and Debit Card Home Page

EFTPS – Electronic Federal Tax Payment System

  • Initiate payments via the internet or phone without fees
  • Receive email confirmation once payment is complete and review payment history online
  • Schedule payments up to 365 days in advance and modify/cancel up to two business days before scheduled payment date
  • Available 24 hours a day, 7 days a week for all federal tax forms
  • Restrictions: requires pre-enrollment before making first payment and payments need to be scheduled by 8 PM at least one calendar day in advance of payment due date
  • EFTPS Home Page

EFW – Electronic Funds Withdrawal

  • Direct debit savings or checking account through tax preparation software or tax professional without fees
  • Schedule payments for future dates, up to return due date
  • Cancel payments up to two business days before scheduled date
  • Restrictions: Federal tax deposits cannot be paid, payments must be completed in a single transaction, and in the event of an error/cancellation, fines and penalties will apply if another payment method is not used by payment due date

Same-day Wire

Check or Money Order

  • Mail check or money order to address listed on voucher or form instructions
  • Payable to U.S. Treasury
  • Payment needs to include the following information:
    • Name and address
    • Daytime phone number
    • Social Security number or EIN
    • Tax year
    • Tax form or notice number
  • Restrictions: not available for all business forms and payments require vouchers
  • IRS Check or Money Order Home Page

If you need help choosing which of these options is the best fit for you, give us a call at 210.733.6611 or send us an email at office@atkgcpa.com! You can also visit and restrictions you can visit the IRS Payments Home Page for more information.

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