The IRS offers several electronic payment methods for paying taxes, which are convenient, safe, and secure. Here are the primary methods available:
- Electronic Federal Tax Payment System (EFTPS):
- Description: EFTPS is a free service provided by the U.S. Department of the Treasury that allows taxpayers to pay federal taxes electronically.
- How to Use: Payments can be made online at EFTPS.gov or by phone using the EFTPS Voice Response System.
- Features:
- Schedule payments up to 365 days in advance.
- Check payment history for up to 16 months.
- Cancel a payment online or by phone up to two business days before the scheduled payment date.
- Security: Requires a Personal Identification Number (PIN) and password for online payments.
- Electronic Funds Withdrawal (EFW):
- Description: EFW allows taxpayers to authorize a direct debit from their checking or savings account when e-filing their tax return.
- How to Use: Available through tax professionals and tax software.
- Features:
- Schedule payments for withdrawal on a future date up to the due date of the return.
- Payments are withdrawn on the specified date unless it falls on a weekend or holiday, in which case the payment is withdrawn on the next business day.
- Security: Requires the taxpayer's financial institution's routing transit number and bank account number.
- Credit or Debit Card Payments:
- Description: Taxpayers can pay their taxes using a credit or debit card.
- How to Use: Payments can be made online, by phone, or through a mobile device.
- Service Providers: Payments are processed through service providers such as Link2Gov, WorldPay US, Inc., and ACIWorldwide.
- Features:
- Earn miles, points, rewards, or cash back from the credit card issuer.
- Service providers charge a convenience fee based on the amount of the tax payment.
- Security: The IRS does not receive or store credit or debit card numbers.
- Federal Tax Collection Service (FTCS) - Same Day Wire Transfer:
- Description: Allows taxpayers to make same-day wire transfers to pay federal taxes.
- How to Use: Initiate a wire transfer through a financial institution.
- Features:
- Payments must be received by 5:00 p.m. ET.
- Financial institutions may charge a fee for this service.
- Security: Requires completion of a Same-Day Taxpayer Worksheet available at EFTPS.gov.
- IRS Direct Pay:
- Description: A free service that allows individual taxpayers to make payments directly from their checking or savings accounts.
- How to Use: Available online at IRS.gov/payments.
- Features:
- Instant confirmation after submitting the payment.
- Can be used for current and prior year Form 1040 series returns, installment agreements, estimated tax payments, and extension payments.
- Security: Secure online service with instant confirmation.
- Electronic Federal Tax Payment System (EFTPS) for Businesses:
- Description: Similar to EFTPS for individuals but tailored for business taxpayers.
- How to Use: Businesses can enroll in EFTPS via the Internet at EFTPS.gov or by completing Form 9783.
- Features:
- Schedule payments up to 365 days in advance.
- Payments can be made 24/7.
- Security: Requires a PIN and Internet Password for online payments.
- Installment Agreement:
- Description: Allows taxpayers who cannot pay their tax liability in full to make monthly installment payments.
- How to Use: Apply online using the Online Payment Agreement (OPA) application or submit Form 9465.
- Features:
- Immediate notification of approval when applying online.
- Lower user fees for online applications and direct debit payment options.
- Security: Requires a power of attorney for authorized representatives.
- Pay with Cash:
- Description: An option for unbanked taxpayers to pay their taxes with cash.
- How to Use: Follow instructions on the IRS.gov/payments page under the cash option.
- Features: Allows individuals without bank accounts to make tax payments.
- Check or Money Order:
- Description: Taxpayers can mail a check or money order to pay their tax liability.
- How to Use: Accompany the payment with Form 1040V, Payment Voucher.
- Features: Payments can be mailed at any time on or before the return due date.
- Security: Ensure the check or money order is made payable to the "United States Treasury."
These payment methods provide flexibility and convenience for taxpayers to meet their tax obligations securely and efficiently.
Sources:
Publication 966 (3/2012)
IRM Part 3. Submission Processing. Chapter 17. Accounting and Data Control. Section 277. Electronic Payments
Publication 3611 (1/2014)
Publication 3909
Publication 1380
Publication 1345 (11/2023)
Publication 901 (9/2016)
