IRS Payment Options

It’s not good news that you owe the IRS taxes, but the good new is, they offer several different payment methods when paying your taxes. This at least makes it easier as you can choose the method best for you.

Check Mailed With Return:

After preparing your taxes, you determined that you owe the IRS, one of the ways to pay is by sending a check or money order with your tax return. You must madke sure that your check or money order are marked clearly with your name, physical address, Social Security number, a phone number and what year you are paying taxes. It is also a good idea to write the form number of your tax return on your check or money as well. If you are filing married and joint, the Social Security should be the first person listed on your tax return.

Electronic Funds:

If you have determined that you owe income take, you may arrange for automatic EFT (electronic fund transfer), whereas the IRS will directly debit your account or the amount of taxes you owe. You will need to provide your account number, routing number and name of financial institution. Verify with your bank they honor and process EFT payments first.

Pay IRS Direct At Office:

You may also go to any IRS office and make your payment directly. You will be given a receipt and this should be palced with a copy of your tax return and any supporting documentation used to complete your tax return for the year.

Credit Card Payments:

The IRS has authorized three credit card services to accept credit cards payments on their behalf. Those credit card services include Link2Gov Corporation, Official Payments Corporation and RBS WorldPay. You may do this by phone with these services or visit their individual websites and complete the transaction on-line. A non-standard fee will be charged as explained on each website.

Estimated Tax Payment:

For businesses, individuals or partnerships that anticipate owing taxes may make estimated tax payment to the IRS when using Form 1040-ES.

Checks Returned

Any one that has wrote a check to the IRS that is returned for non-payment will receive a Letter 608C “Dishonored Check Penalty Explained”. It will provide details of the dishonored payment, including the fees and penalties that will be added by the IRS. Some clearing houses will redeposit the check and if it clears, no penalty will be charged by the IRS.