IRS direct pay is a newly launched web-based system that enables taxpayers to pay their tax bills and calculates their tax payments through online. The payments will be directly charged from the taxpayer’s savings or checking accounts without any pre-registration and extra fees. Consumers may log in to IRS.gov. to be able to access the new payment system.
John Koskinen the IRS commissioner explains that the IRS Direct Pay reflects the effort of the government to add more online tools to provide additional service for the taxpayers. He also added that the system simplifies the payment process, and taxpayers can make a payment from the convenience of a home computer.
As of now there are approximately 150,000 taxpayers who use IRS Direct Pay system to pay their taxes which is estimated amount of $340million. Taxpayers can use the system at any time of the day as it is available 24/7 a week. When the payment is made, the system will automatically send a confirmation message to the consumer if the payment is successful.
You need to log in to the IRS System in order to access the IRS Direct Pay and then click the “Pay your Tax Bill” icon found at the upper part of the homepage. After that, you just need to follow the 5 simple instructions. First, you will asked to provide tax information, second, you will need to verify your identity, then you need to enter your payment information, lastly will be the reviewing of your details before signing electronically and finally recording your confirmation online. One of the good things about IRS system is that after the payment is made, the taxpayer’s bank account information will be erased in their database.
Currently, you can set a 30 days’ advance payment scheduling with IRS Direct Pay, you can also cancel and reschedule and find the status of your payments. In near future, the system will be also be available in Spanish and will have emailed payment confirmation option. Alternative Options for Paying Now:
As for individual and business taxpayers, they can pay federal taxes via phone with no charge or through online using EFTPS. EFTPS stands for Electronic Federal Tax Payment System. Taxpayers can call 800-555-4477 or visit their website at EFTPS.gov to register and to know more details.
Direct pay and EFTPS users can get email notifications regarding their electronic payments if they sign up for it. Taxpayers who sign up will start to receive electronic mails on their payments that are cancelled, returned, modified and even scheduled payments. With these emails, taxpayers will be reminded of his/her scheduled payments and they can also monitor if the address was changed because it will send a confirmation message.
Taxpayers who use Direct Pay must sign up for email updates every time they will make payment for them to be able to receive emails. On the other hand, for EFTPS users, they only need to sign up one time for them to receive messages every time payment was made. These emails from both systems can be disabled any moment by the taxpayer.
Email schemes are rampant now a day, which is why IRS never fails to remind taxpayers to be vigilant in these kinds of schemes. The email service of EFTPS and Direct pay will only be only activated once the taxpayer requested it.
Meanwhile, when a taxpayer chooses to file their federal taxes electronically with the help of a tax professional or tax preparation software they can avail the unified e-file/e-pay option which is called Electronic Funds Withdrawal. Sending one or more request for immediate debit payment directly to the taxpayer's specified bank account is possible.
It is possible for a taxpayer to do same-day wire transfer from their financial organization. Given that the taxpayer must be aware of his/her financial organization’s availability, cost of transfer and cut-off time in processing the transfer.
Using mobile devices and phones, taxpayer’s can conveniently pay their taxes either it was file electronically or manually, and can also respond to notices and pay bills online with their debit and credit cards. IRS utilizes business/commercial card networks and standard service providers to facilitate payments. It become safer and secure because the information given by the taxpayer will only be used specifically to process their payments. Generally, payments made through a payment processor will incur a processing fee.
The IRSGo application provides convenient access to mobile-friendly options such as IRS Direct Pay that provides a free and secure means to facilitate payment directly from taxpayer’s bank account or credit/debit cards with the use of recognized payment processor for a certain charge. IRSGo mobile application can be downloaded by the taxpayer’s for free from Google Play, Amazon and Apple App Store.
IRS provides means for taxpayer who chooses to pay their taxes in cash; they are allowed to pay through a participating retail store. Thus, the taxpayer should pay in advance using this option because the payment will usually takes 5 to 7 business days to process and to be posted. If you need additional information and clearer instructions you can visit IRS.gov/paywithcash or if you want printable instructions look for Publication 5250.
Taxpayer can use a check or money order in paying their taxes and bills by sending it via mail. But before considering this kind of option, it is advisable to check first and look for other fast and convenient e-payment options.
Not all taxpayers are capable of paying their taxes on time, thus IRS provides other ways for them to pay their payables in full amount. One of these options is by a short-term payment plan which offers up to 120 days grace time period with no user fee applicable.
Taxpayers second option is by Installment agreement or longer term monthly payment. This will incur a monthly user fee of $149 but can be reduced to $31if the taxpayer uses direct debit as payment.
A financial statement is required to be submitted by individual whose tax payable is more than $50 000 and $25 000 for business if they wish to request for a payment plan.
Other alternative is an Offer of compromise, in which the taxpayer will be given a chance to settle their tax debt by paying less than the amount of their payables through making an agreement with the IRS. Unfortunately not everyone is entitled to the offer; taxpayers who wish to avail must undergo the Offer of Compromise Pre-qualifier to know if they are qualified to avail the offer.
In some situations, taxpayer is advised to a look on borrowing the tax amount due by getting loans or through credit card payments. The interest from loans might be lesser than the fines and accumulated interest if payment was not made.
IRS can offer other way such as temporary suspension of collection for those taxpayers who can’t find the exact option that suits them. In order to discuss other options taxpayer can reach IRS through the phone number indicated on their bills or they may call 800-829-1040.
YourIRSTaxAdvocate.com