10 Simple and Convenient Ways to Pay Your Tax Bill

It’s that time of year again – tax season. As Americans complete their tax returns, many will owe money to the IRS. Paying taxes can feel like an unpleasant task, but it doesn’t have to be painful. The IRS offers several convenient and easy payment options to suit different needs and preferences. In this article, we’ll explore the top 10 ways to pay your tax bill so you can choose the best method for you.

1. Direct Pay

One of the fastest and simplest ways for individual taxpayers to pay the IRS directly from a bank account is through the IRS Direct Pay service. This free online option allows you to schedule a payment immediately or up to 365 days in advance. You’ll need to provide personal information like your Social Security number and date of birth to verify your identity. Direct Pay enables you to receive email notifications about your payments and gives you the ability to modify or cancel a payment up to two business days before the scheduled payment date. It’s available 24/7, providing flexibility. The only downside is you can’t make payments from international bank accounts.

2. Electronic Funds Withdrawal

When you e-file your tax return using tax preparation software or a tax professional, Electronic Funds Withdrawal (EFW) allows you to authorize an automatic debit from your bank account to pay your tax bill You can schedule one or multiple payments up to 365 days in advance when filing before the tax deadline After the deadline, payments must be debited the same day you e-file. If the IRS withdraws an incorrect amount from your account, you’ll have to wait for it to be returned to you. Cancelling a payment also takes 7-10 days once the IRS accepts your return.

3. Electronic Federal Tax Payment System

The Electronic Federal Tax Payment System (EFTPS) is a free service you can use to pay federal taxes right from your bank account. While it takes around 5 days to enroll, this option allows you to schedule tax payments up to 365 days ahead. You can modify or cancel payments 2 days before they are scheduled. EFTPS also provides a payment history and customer service reps to help with any issues. The biggest con is that initial setup takes longer than Direct Pay.

4. Credit or Debit Card

Using your credit or debit card to pay the IRS is quick and convenient. While the IRS doesn’t charge a fee, you will pay processing fees ranging from 1.87% to 1.99% of the payment amount to authorized third-party processors. Fees for debit payments are around $2.50 to $3.95 per transaction. This method works for last minute payments, but the fees can add up, especially on large amounts. You’ll also need to contact the processor directly to cancel a payment.

5. IRS2Go Mobile App

For taxpayers on the go, the IRS2Go mobile app offers a few different payment options. You can use Direct Pay for free bank account transfers or make debit/credit card payments for a fee right from your smartphone or tablet. The app also generates login security codes so you don’t have to wait for texts. While the selection is limited compared to the IRS website, IRS2Go provides mobile-friendly payment flexibility.

6. Check or Money Order

Mailing a physical check or money order payable to the “United States Treasury” is still an option for paying the IRS. You’ll need to include payment voucher Form 1040-V and follow mailing instructions based on whether you’ve filed your return yet. A mailed payment takes time to process and doesn’t allow you to schedule payments in advance. However, it works if you don’t have a bank account. One downside is the risk of a check bouncing if funds aren’t available.

7. Same-Day Wire

You can arrange a same-day wire transfer through your bank or nonbank provider to send your tax payment quickly and securely. This method requires filling out a special IRS worksheet for each tax payment and taking it to your financial institution to execute the transfer. While wires avoid mailing delays, bank fees apply and you must complete separate forms for each payment Wires are irreversible once processed.

8. Cash

Believe it or not, cash is an accepted form of IRS tax payment. You’ll need to visit an IRS-approved retail partner such as CVS, 7-Eleven, or Kroger and present a special barcode available through the IRS website. These locations charge a small service fee to process the cash payment. You can also pay with cash at some IRS Taxpayer Assistance Centers with an appointment. While not the most convenient option, cash payments work if you can’t use traditional financial accounts.

9. Installment Agreement

If you can’t afford to pay your IRS bill all at once, you may qualify for an installment plan to pay over 6-72 months. Short-term agreements have lower fees and eligibility requirements compared to long-term plans. Apply online or complete Form 9465. This option prevents further penalties while giving you time to pay. However, interest continues accruing until the balance is paid off.

10. Offer in Compromise

For taxpayers facing financial hardship with little ability to repay tax debt, the IRS Offer in Compromise program may provide relief by settling for less than you owe. You’ll need to prove inability to pay, so this option has strict eligibility rules. If approved, the IRS agrees to forgive a portion of your tax debt obligations after you pay the negotiated reduced amount. This program provides a clean slate for taxpayers in very tough situations.

The days of physically writing checks to the IRS are gone. Today’s electronic payment options make settling your tax bill easier than ever. Choose the method that best matches your needs and preferences. Just be sure to pay your taxes on time, whether in full or making the first installment payment, to avoid unnecessary penalties and interest. With flexible solutions now available, there’s no reason to fear tax day.