What’s an unfortunate reality many Americans (maybe all at one point) have to face? Paying the Internal Revenue Service. However glum it may be, the IRS does offer many payment options to hopefully make it easier to pay refunds and the like. Here are the methods:
- Paying electronically via directly from a bank account or an approved debit or credit card. The IRS has options on its website for these two methods – and taxpayers can call to pay with a card.
- The Electronic Federal Tax Payment System (EFTPS). EFTPS is a secure website that allows users to make federal tax payments online. Businesses and individuals can schedule payments up to a year in advance – and payments such as federal tax, income, employment, and estimated taxes are accepted. This requires enrollment, and generally is best suited for businesses or large payments.
- When filing federal taxes, the Electronic Funds Withdrawal (EFW) is a useful e-pay option. Similar to the EFTPS, individuals and businesses can use it and schedule payments in advance – but this can only be used during filing season.
- Same day wiring from a bank. Financial institutions will have appropriate worksheets to guide taxpayers.
- Check payments. To do this, make the check, money order, or cashier’s check payable to the U.S. Treasury. Do not send cash through the mail.
- The IRS offers cash payments through participating retail stores.This generally takes five to seven business days.
If someone can’t pay on time, or the full amount at once, the IRS allows monthly installments, comprise offers, and temporary delays. The IRS must approve these options first. Surprised at the amount you owed this tax season? Use the W4 Assistant to help determine withholding on each check.