Paying the IRS
The are many ways to pay your Federal Tax obligation to the IRS, however, your situation will dictate what options are available to you. Here’s a link to the IRS ‘Payment’ page which will explain all options. Payments.
Most taxpayers will only be concerned with a couple of the payment options. Here’s a list of the most common payment methods. I’ll provide links to each section.
Direct Debit Payment When You Efile Your Return
When you E-File your return you have the option paying your tax liability by a direct debit from your bank account. Remember, this is a direct debit from a bank account and not a debit card transaction. You will provide your tax preparer or E-filer with your bank name, account and routing numbers. You should see the debit from your account within 2 - 3 days. There is no fee for this service.
A nice characteristic with this payment method is that you can E-file your return (Meeting the IRS filing requirement and avoiding the ‘Failure to File’ penalty) and designate a date specific withdrawal in the future. Remember, you will want to designate a date before the filing deadline, otherwise, you will have a ‘failure to pay’ penalty.
Paying by Check or Money Order when E-filing or Mailing in your return.
If you do not want a direct debit, then there is always the option of paying by check or money order. The mailing address of where to send your check is different depending on the area of the country you reside and whether or not a payment is attached to the return. Here’s the link for the address IRS Payment Addresses.
It’s important to understand that you can file your return (E-file or Mail) without a payment. This will prevent you from receiving a ‘Failure to File’ penalty. Just make sure your get your payment into the IRS before the deadline of April 17th, 2019.
Payment Plans with the IRS
For those who can’t pay your tax obligation in one lump sum, you are eligible for an ‘Installment Plan’ with the IRS. I’ve outlined the plans below with their associated costs:
Online (OPA): Installment agreement: $149
Online (OPA): Installmetn agreement with direct debit: $31
Regular (Paper or Efiled): Installment agreement: $225
Regular (Paper or Efiled): Installment agreement with direct debit: $107
I recommend using option number 2 or 4. Option 2 is easy. All you have to do is go to the IRS website and follow some simple instructions. You will need to register with the IRS and make sure you have a copy of tax return handy. Online Payment Agreement (OPA)
I use Option 4 when clients absolutely do not want to use the OPA. This option allows me to complete IRS Form 9465 as part of your Efiled return. There are no additional fees.
If you are not comfortable with working online, then we can assist you with manually completing IRS Form 9465. I would recommend not doing this option because from my experience, the IRS usually misplaces your application. Not sure why, this is just my experience. If this is your only option, then I would keep copies of everything and send the form Certified Mail so you have a receipt.
When requesting a Payment Plan be prepared to answer questions regarding Car Payment, Heath Insurance, Household size, Alimony and Child Support to name a few. Remember, the IRS needs to accept you into the plan. It’s not automatic. If you income is too high you will be rejected.
Paying Taxes with Credit or Debit Cards
The IRS is prohibited by from accepting credit or debit card payments for your federal tax obligation. With that said, there are third party providers that will act as an intermediary with the IRS to facilitate usage of credit or debit card payment. Here’s a link to make a CC or debit card payment.
I’m always available to answer any questions. Please call or email me!