How to pay your federal taxes (IRS)
1. Electronically via IRS Direct Pay (Bank & Credit Card)
The IRS now has a direct payment option called "IRS Direct Pay." This option is found directly on the IRS website. You can pay via ACH/Check or credit card. Go to https://www.irs.gov/payments and follow the instructions. Note: You will need to authenticate your identity, hence, have your prior year tax return handy.
Bank and Credit Cards are accepted.
Bank and Credit Cards are accepted.
2. Mail a check to the IRS
Download the below PDF voucher. Make the checks out to "United States Treasury" - include your Social Security Number AND tax year on the memo line of the check. If you live in Texas, mail your check and the voucher to:
Internal Revenue Service
P.O. Box 1214
Charlotte, NC 28201-1214
Keep copies for your records.
Internal Revenue Service
P.O. Box 1214
Charlotte, NC 28201-1214
Keep copies for your records.
3. Via ACH (Bank) with the filing of a return or extension
Your tax professional can transmit ACH payments from your bank account with the filing of a return or extension. Please provide us with:
- Bank name
- Routing number
- Account number
- Account type (checking or savings)
4. Cash (at a participating 7 Eleven stores and other retailers)
No kidding, the IRS accepts cash. The IRS has partnered with several retailers to accept cash payments. There is typically a $3.99 convenience fee and a limit of $1,000 per day.
5. EFTPS.gov (Electronic Federal Tax Payment System)
If you are self-employed, you should establish a personal account in order to pay your individual estimated taxes. Once you enroll, you will receive a PIN via US mail. You will then have the ability to log in and make payments. The other great benefit is that you can schedule the payments in advance and search your payment history by tax type.
The enrollment process can take about 10-15 days. Hence, do not go this route if you wish to make an immediate payment.
The enrollment process can take about 10-15 days. Hence, do not go this route if you wish to make an immediate payment.
6. Installment Agreement
If you can't pay all of your taxes, the IRS can work with you and allow you to pay in monthly installments. The IRS does continue to charge interest and penalties on the unpaid balance. However, you generally have 72 months (or 6 years) to pay any balance owed.
To maintain your installment agreement you will have to make your payments timely, avoid owing taxes in future years, and you must file your tax returns timely.
Depending on the amount you owe, we can advise on you on amounts and information that the IRS will need to accept your installment agreement.
To maintain your installment agreement you will have to make your payments timely, avoid owing taxes in future years, and you must file your tax returns timely.
Depending on the amount you owe, we can advise on you on amounts and information that the IRS will need to accept your installment agreement.
7. Offer-in-compromise (OIC) Settlement
If you cannot pay your taxes, the IRS may consider a lump-sum payment settlement to satisfy your tax debts. This process is a tedious process since the IRS has to determine if it is in the government's best interest to settle vs. attempt to collect the debt owed.
In my experience, the IRS is the most aggressive collection agency in the planet and the government has many tools at their disposal to seize taxpayer assets. Hence, the IRS can usually collect outstanding debts from most taxpayers.
Nonetheless, an offer-in-compromise (OIC) can be a viable alternative for some taxpayers. However, its important to understand a couple of things about the OIC.
First, acceptance is rare. In 2013, the IRS received several million requests and only about 31,000 were approved (less than 1.5% of the requests.
Second, the lump sum amount can be high. Additionally, the minimum offer amount the IRS will accept is not "pennies on the dollar" as some tax resolution companies claim. The minimum offer amount is a calculation that frequently, taxpayers cannot afford.
Use the below OIC pre-qualification tool to see if you are eligible. We represent you and assist you if you are pre-qualified.
In my experience, the IRS is the most aggressive collection agency in the planet and the government has many tools at their disposal to seize taxpayer assets. Hence, the IRS can usually collect outstanding debts from most taxpayers.
Nonetheless, an offer-in-compromise (OIC) can be a viable alternative for some taxpayers. However, its important to understand a couple of things about the OIC.
First, acceptance is rare. In 2013, the IRS received several million requests and only about 31,000 were approved (less than 1.5% of the requests.
Second, the lump sum amount can be high. Additionally, the minimum offer amount the IRS will accept is not "pennies on the dollar" as some tax resolution companies claim. The minimum offer amount is a calculation that frequently, taxpayers cannot afford.
Use the below OIC pre-qualification tool to see if you are eligible. We represent you and assist you if you are pre-qualified.