Even if you cannot pay your taxes on the due date, always file your return timely. An extension of time to file does not extend the time to pay. Partial payments at any time will generally reduce failure to file penalties, failure to pay penalties, failure to make estimated tax payments, as well as interest. The five ways to pay are:
- By Check: Include a check with your return.
- Electronic Funds Transfer: Authorize the Service to draft your bank account on the payment due date.
- Pay by Credit Card or Debit Card: You can charge your taxes on your American Express, MasterCard, Visa or Discover credit cards. Additionally, you can pay by using your debit card. However, the debit card must be a Visa Consumer Debit Card, or a NYCE, Pulse or Star Debit Card. To pay by credit card or debit card, contact one of the service providers at its telephone number or Web site listed below and follow the instructions. There is no IRS fee for credit or debit card payments, but the processing companies charge a convenience fee or flat fee. If you are paying by credit card, the service providers charge a convenience fee based on the amount you are paying. If you are paying by debit card, the service providers charge a flat fee of $3.89 to $3.95.Do not add the convenience fee or flat fee to your tax payment.
- Need Additional Time to Pay: Based on your circumstances, you may be granted a short additional time to pay your tax in full. A brief additional amount of time to pay can be requested through the Online Payment Agreement application at IRS.gov or by calling 800-829-1040. Taxpayers who request and are granted an additional 30 to 120 days to pay the tax in full generally will pay less in penalties and interest than if the debt were repaid through an installment agreement over a greater period of time.
- Installment Agreement: You can apply for an IRS installment agreement using the Web-based Online Payment Agreement application on IRS.gov. This Web-based application allows taxpayers who owe $25,000 or less in combined tax, penalties and interest to self-qualify, apply for, and receive immediate notification of approval. You can also request an installment agreement before your current tax liabilities are actually assessed by using OPA. The OPA option provides you with a simple and convenient way to establish an installment agreement and eliminates the need for personal interaction with IRS and reduces paper processing. You may also complete and submit a Form 9465, make your request in writing, or call 1-800-829-1040 to make your request. For balances over $25,000, you are required to complete a financial statement to determine the monthly payment amount for an installment plan. For more complete information see Tax Topic 202, Tax Payment Options on IRS.gov.
The debit and credit card processing companies are:
Official Payments Corporation:
1-888-UPAY-TAX (888-872-9829),
www.officialpayments.com/fed
Link2Gov Corporation:
1-888-PAY-1040 (888-729-1040),
www.pay1040.com
RBS WorldPay, Inc.
1-888-9PAY-TAX (888-972-9829),
www.payUSAtax.com