The Internal Revenue Service reminded taxpayers that it’s easier than ever to pay their taxes electronically.
Taxpayers who owe taxes can now choose among several quick and easy electronic payment options, including the following:
- Electronic funds withdrawal allows taxpayers to E-file and pay from their bank account when using tax preparation software or a tax professional. EFW is only available when e-filing.
- Direct Pay. Available at IRS.gov/directpay, this free online tool allows individuals to securely pay their income tax directly from checking or savings accounts without any fees or pre-registration. Payments can be made 24 hours a day and scheduled up to 30 days in advance. Any taxpayer who uses the tool receives instant confirmation that their payment was submitted. Direct Pay has successfully processed more than 10 million payments totaling over $30 billion since its debut in 2014.
- Credit or debit card. Taxpayers can pay online, by phone or using their mobile device through any of the authorized debit and credit card processors. A convenience fee is charged by the processor. The IRS doesn’t receive or charge any fees for payments made with a debit or credit card. Go to www.IRS.gov/Payments for authorized card processors and their phone numbers.
- IRS2Go. TheIRS2Go mobile app is free and offers taxpayers the option to make a payment with Direct Pay, or by debit or credit card through an approved payment processor for a fee.
- Electronic Federal Tax Payment System. This free service gives taxpayers a safe and convenient way to pay individual and business taxes by phone or online. To enroll or for more information, call 800-316-6541 or visit www.eftps.gov.
- Cash. Taxpayers without bank accounts or if cash is their only option can pay using the new PayNearMe option. Payments are limited to $1,000 per day, and a $3.99 fee applies to each payment. Because PayNearMe involves a three-step process, the IRS urges taxpayers choosing this option to start the process well ahead of the tax deadline to avoid interest and penalty charges. The IRS offers this option in cooperation with OfficialPayments.com/fed and participating 7-Eleven stores in 34 states. Details, including answers to frequently-asked questions, are at IRS.gov/paywithcash.
Please contact your Somerset Tax Advisor with any questions.