The IRS accepts payments in different ways, as listed below. In order to avoid fines and interest, it goes without saying that you should act before the tax deadline.
There are methods to simplify the payment process, some of which may even have advantages.
IRS Directly Transferring Funds From Your Bank Account
You can access the electronic procedure using the “Direct Pay” feature on the IRS portal or through your e-file program (the electronic fund withdrawal).
Generally speaking, you are regarded to have paid your taxes on the day you submitted the payment request. However, processing a fund withdrawal can take up to two business days.
If you select this option, the IRS Direct Pay portal will walk you through a five-step process to pay taxes. The IRS utilizes your social security number and prior year returns to confirm your identification, so keep them on hand.
Regardless of the electronic payment option you select, keep a record of the confirmation number for each payment you make.
Visa and MasterCard: You can pay your taxes with your cards over the phone, online, or via a mobile device. This payment option can only be facilitated by third parties who have received IRS approval; nevertheless, these services come with a convenience charge.
Although the three service providers’ accepted payment methods vary, all three accept Visa, Mastercard, Discover, American Express, Paypal, and Click to Pay.
PayUSAtax, Pay1040, and ACI Payments are the three businesses the agency partners with. For consumer debit cards, they impose a flat cost of $2.20 to $2.50 and a percentage fee of 1.85% to 1.98%.
Check the fees because, for example, paying a $5,000 tax bill with a credit card can cost you up to $99.
Read more: IRS Data Show That In 2023, Americans Will Receive Smaller Stimulus Payments
Mailing A Check Or Money Order
The IRS advises taking into account safer, faster, and simpler electronic payment options.
But what if you go the conventional route? Compose a check for the amount of your tax obligation and mail it along with the tax return’s associated voucher form, such as the 1040-V for individual tax returns, in an envelope.
To ensure that the vouchers are processed correctly, include your name, social security number, address, and the amount of taxes still owed. The voucher’s balance and the check or money order that is attached should match.
For the 2022 tax year, April 18 is also the cutoff day for submitting tax extension requests and making contributions to regular IRAs, Roth IRAs, SEP IRAs, Health Savings Accounts (HSA), and solo 401(k)s.
Due to the fact that April 15 falls on a Saturday this year, tax day will not be on that day. Tax Day, which falls on April 17 this year, is typically the next working day after April 15. Emancipation Day, a local holiday in the District of Columbia, falls on that day as well, hence the IRS is closed on that day.