Taxes and Death are still thought to be as the two most certainties in this life. Did you know that the IRS penalties for not paying taxes on time are generally less than the penalties for not filing a tax return? So filing a tax return or at least an extension on time should not be an excuse even if you can't pay the taxes at that time. When you prepare and eFile your tax return from the eFile tax app you can use the direct bank transfer, check or money order methods as listed below. Or, you can use any other method outlined here.
Of course, the most accurate way to find out taxes owed or due is a tax return. However, there are many other scenarios that require to plan and or estimate taxes prior to filing a return or paying taxes.
If you have not filed yet and would like to estimate potential tax payments use one of these tools to find out.
As stated above, late filing penalties are generally higher than late payment penalties. Find out for yourself. Currently, we only have a tool to estimate IRS penalties and not state penalties.
Need more Tax Help on ways to estimate or your taxes? Contact one of our Taxperts.
When it comes to paying IRS and or State Taxes there are essentially three scenarios:
Direct Payment.This option is also available from the eFile.com tax app when you prepare and eFile your Taxes. Details
Recommended to most taxpayers who have the funds in their bank account and want to process one time income tax payments online or do not need to or don't want set up re-occurring payments.
Create or access your IRS account and monitor your tax payments and other updates e.g. amount you owe, updated for the current calendar day, payment history and any scheduled or pending payments, details about your payment plan -if you have one, information from your most recent tax return.
Recommended: This account will show your payment status and history, plus you can access tax transcripts of income statements and tax returns. For example, if you need your Adjusted Gross Income etc.
EFTPS or the Electronic Federal Tax Payment System® tax payment service lets you enroll so you can pay any tax due to the IRS via scheduled payments for free.
Recommended to taxpayers who would like to manage their scheduled or re-occurring payments via the US Treasury provided platform via a registered account. Payments over $10Mil. are enabled. There are no processing fees.
Select from three payment processors and use one of the following electronic payment options: Visa, Master Card, Discover, American Express, STAR, Pulse, NYCE, Accel, Visa Checkout, MasterPass, Amex Express Checkout, PayPal. The debit card frees range from $2.55 - $3.95 depending on tax amount to be paid. The credit card convenience fee ranges between 1.87% and 1.99%. There are limits on how many payments can be made by debit or credit card. For tax payment amounts over $100,000 certain restrictions apply and they are all listed on the payment processor page. The fees are higher if you use this method integrated via a commercial online tax preparation platform or through a professional tax preparer.
Credit Card payment is recommended to taxpayers who would like to pay their taxes on time but do not have the funds in the bank and don't want to face late payment penalties. Using a debit card is only recommended if you can borrow money cheaper than paying the credit card borrowing free rate. If you have the funds in the bank, we don't recommend using the debit card due to the fess associated with it, but rather use the above direct payment option as it's fee free.
More Pay by Credit or Debit Card Options
Make sure you check the fees provided by each vendor via the links. They also provide pay via phone options. See below in the pay by phone section.
Recommended to taxpayers who can't complete a direct payment or an enrolled payment via EFTPS or have to transfer very large tax payment amounts, as there is no limit with wired transfers. The fixed processing fees will vary.
Tax payments by cash can be accepted by participating retailers listed on the link on the left. Tax payments are limited to $1,000 per day, plus there are limits on payment frequencies. The free for the cash transaction is $3.99.
Recommended to taxpayers who might not have a bank account or a credit/debit card, and/or have low amount of income taxes due. For convenience and fee reasons and if you can use the direct deposit method listed above, we recommend that over the cash payment.
Make the check or money order payable to: U.S. Treasury. The following information should be included: Name and Address, Social Security number (the SSN shown first if it's a joint return), related tax form numbers and tax year and or IRS notice number. Do not include cash in the mail. Make sure you select the correct IRS mailing address from the link on the left.
Recommended to taxpayers who might not have a bank account or a credit/debit card, and/or have low amount of income taxes due. Generally, the postal stamp counts as the date of payment. If you purchase a mail tracking number the fee might be similar to a cash payment or wire transfer. For convenience we recommend the direct deposit method over check or money order in the mail.
Payment by Phone
The IRS will not accept payments over the phone through their 1-800-829-1040 number. Here is a list of vendor that accept credit card or debit card payments via the phone. These vendors are also listed above in the pay by credit card section.EFTPS - Electronic Federal Payment System
: Phone: 1-800-555-4477 or TTY/TDD equipment can call 1-800-733-4829. Click for Fees. Official Payments
: Phone: 1-888-872-9829. This site allows state tax payments as well. Use their fee calculator for a fee estimate
based on payment type.Link2Gov Corporation
: Phone: 1-888-729-1040. Fees as of June 30, 2020: Credit Card 1.87% (minimum of $2.59), Debit Card $2.58.WorldPay US, Inc.
: Phone: 1-844-PAY-TAX8. Fees as of June 30, 2020: Credit Card Fee: 1.96%, Debit Card Fee: $2.55.
Call or visit the sites as listed above for current fee updates.
General Payment Recommendations
With any of the above pay now payment methods, in order for the payment to arrive on time and avoid IRS late payment penalties and interest fee we highly recommend to give yourself plenty of time for the payment to arrive on time at the IRS. With most electronic payment methods you can best track the payment status, process and flow.
Find out if you should make 2020 Tax Year Income Estimated Income Tax Payments. When and how to make those payments.
Tax Payment Options on eFile.com
When you prepare and eFile your tax return on eFile.com, the following payment options are available to you from within the tax app. You do not have to use any of these available options. The payment options outlined above are available to any taxpayer regardless of online platform.
Allows you to have your tax payment electronically withdrawn from your bank account only when you efile a tax return at the same time.
During the efiling process, you will go to a screen to enter your bank account information, and this information will be submitted to the U.S. Treasury once you efile your return. You may also go to a separate screen for state tax payment submission, but we will let you know if your state does not offer direct debit before you submit your state return. Details
Mail a check or money order to the IRS after you efile or file your tax return. Attach payment voucher Form 1040-V
(included with your tax return) to your mailed check or money order. Then, mail the payment and voucher to the IRS address based on your state residence (find IRS mailing addresses based on state residence
here). If you owe state tax, there is a payment voucher in your state tax return that contains instructions on how to submit your state tax payment. Details