Originally, taxpayers could only make payments to the IRS by check and money order. Today the IRS offers a variety of ways to pay, including online. Even online there are options. The cheapest way to make an IRS payment online is with your bank account through Direct Pay.
What is IRS Direct Pay?
Direct pay with a bank account is a secure service to pay federal taxes. Taxpayers can use it for Form 1040 series, estimated tax payments, and other associated payments. You can make payments from your checking or savings account with no fees.
The system also makes it easy for you to track payments made by IRS direct pay. Each time you make a payment you will receive an e-mail notification with the confirmation number. You can use the confirmation to track payments made through direct pay. You can also change or cancel scheduled payments up to 2 business days before they are due.
What payments can I make with IRS Direct Pay?
As mentioned before, you can use IRS direct pay for payments associated with the form 1040 series. The types of payments included are:
Payment plan/installment agreement
CP2000, CP2501, or CP3219A Notices
Proposed tax assessment
Offshore voluntary disclosure
Offshore streamlined filing compliance
How do I make a payment on IRS Direct Pay?
Once you choose to make a payment from your bank account you have a few more selections to make. You have to select:
Reason for payment
What to apply the payment to
Tax period for the payment
The website will then ask you to confirm your selection.
You will need to verify your identity using a previous tax year's information.
Once you verify your identity you can then select the payment amount.
Once you confirm the amount you will enter your bank account information. You can then signup to receive e-mail notifications for the payment confirmation.
The final step is to confirm that everything is correct. It's important to make sure that you have the correct bank account information. You do not want to get charged a dishonored check penalty if you put an account that money can not come from for the payment. It is equally important to make sure that the payment is being applied to the correct tax.
When can I use IRS Direct Pay?
Direct pay is only available for a certain amount of time. The website will let you know before making a payment if the site is down. It is also important to note that whether direct pay is available or not, your tax due date does not change.
The regular operating hours are:
Monday - Saturday from Midnight to 11:45 p.m. Eastern Standard Time
Sunday 7 a.m. to 11:45 p.m. Eastern Standard Time
You can only make 2 payments within a 24-hour time frame. Payments must be less than $10 million. If you need to make a larger payment online you can use the Electronic Federal Tax Payment System Online (EFTPS) or same-day wire.
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When you are facing questions regarding your personal or business taxes, working with a professional makes all the difference. At Bowens Tax Solutions, we serve our Louisville-area neighbors by providing the tax services and knowledge needed to succeed. We are here to assist you with your tax issues and preventative care. Visit our website at www.bowenstaxsolutions.com for more information.