Paying Taxes to the IRS Payment Options
When it comes to paying your taxes, the IRS provides a multitude of options. Gone are the days when you had to write a check to pay your taxes. In fact, you will be surprised to know that there are more ways to make your IRS payments. These are mentioned below.
1. IRS Direct Pay
To pay taxes through IRS Direct Pay, you just need to visit the website and provide your bank information, verify your identity, and authorize the payment. It is free of cost and can be easily done online. You can use it to pay payments for amended returns, estimated taxes, and installment agreement payments. However, it only allows two payments to be made immediately within a 24-hour period and no business payments are allowed.
2. EFTPS (Electronic Federal Tax Payment System)
Another IRS payment option that you can utilize is the EFTPS. It requires you to provide your identity and bank information. It takes around a week for a PIN to arrive which you can use to set a password and authorize the transaction. This payment option is also free and can be done online or by phone. It allows federal taxes and business taxes to be paid. But, it takes longer to set up when compared to Direct Pay.
3. Same-Day Wire Transfer
Next, you can even make your payment through a same-day wire transfer. You can use a bank or non-bank provider for the wire transfer. However, it costs $25 but provides a speedy money transfer. Your financial institution would tell you the exact cost, cut-off time, and availability of the transfer. It requires you to take a separate worksheet for every IRS payment that you intend to make.
4. Debit Card
In addition to the above, you can also use your debit card to make an IRS payment. All you have to do is head over to the website of the three independent payment processors of the IRS and enter your card information along with other data to send money to the IRS. It will cost you around $2 or more for each payment. It can either be done online or through a phone. It works with STAR, American Express, Discover, MasterCard, Visa, PayPal, and digital wallets.
5. Credit Card
Similar to your debit card, you can also make your IRS payment using a credit card. The process is pretty much the same. However, you will be charged around $2.50 to $2.70 for each transaction. It works with the same card options. But, if you carry the balance forward, you would end up having to pay high-interest rates.
6. Check, Cashier’s Check, or Money Order
Lastly, you can opt for the good old options to pay taxes. These include a check, cashier’s check, and money order. All you have to do is have one made in the name of the U.S. Treasury and have it mailed to the IRS. It must include your name, Social Security Number, and other details.
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To ensure that your taxes are paid on time, you can reach out to us. Our qualified accountants will help you with just about everything.
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