If you need to make an IRS Payment, you actually have several options available to you. First, however, it’s important to know what type of payment you need to make. Paying your income tax due with IRS Form 1040, 1040 EZ or 1040 A is the most common form of IRS Payment.
An IRS Payment With Your Federal Tax Return (IRS 1040, 1040EZ or 1040A)
To pay your income tax, you have about a million and one options. First, if you are simply e-filing your tax return with commercial software, you can enter your bank account information to have the IRS make a withdrawal for the amount you owe. This is free, or comes with the price of the software.
To make your IRS Payment from your bank account when you are not using commercial bank account, you can use the IRS’s EFTPS system. This is also a free service, and you can use it to pay all sorts of tax bills, not just your income tax. To register for EFTPS (Electronic Federal Tax Payment Service) go here.
If you want to pay the amount due on your 1040 form with credit card or debit card, there is a fee. The fee goes to the third-party company that processes the credit/debit card payment. Go here to see a list of businesses who work with the IRS to handle IRS Payments.
You can also pay your income taxes by check or money order, or cashier’s check if you really want to pay a higher fee (the fee goes to the bank, not the IRS). Banks charge about $5 for a money order and about $10 for a cashier’s check. If the amount due is over $1000 then you will probably be required to use a cashier’s check.
There is a lot of information you must write on the check, money order or cashier’s check:
- phone number
- SSN or EIN
- tax period and what form you are paying with (for example IRS 1040)
Never send cash to the IRS.
If you can’t pay the balance due then find out about IRS payment plans and installment agreements.