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IRS offers several payment options, including help for those strugglingto pay

     Source; IRS FS-2024-16

Taxpayers have a variety of options to consider when paying federal taxes. Electronic payment options are the best way to make a tax payment.

For taxpayers who cannot pay in full, the IRS encourages them to pay what they can and explore a variety of payment options available for the remaining balance, including getting a loan to pay the amount due. In many cases, loan costs may be lower than the combination of interest and penalties the IRS must charge by law.

The IRS also urges taxpayers not to wait to respond to a notice. Notices and letters provide taxpayers with information about the actions they need to take. Many notices have QR codes that help direct taxpayers to their online tax accounts. In addition, these letters inform the taxpayer of the status of their unpaid balance, options for resolution and their rights in the collection process.

For taxpayers who can’t pay their tax bill in full, the IRS offers several options to help them meet their obligations. IRS payment options are available at IRS.gov/payments.

Options for paying electronically

  • Direct Pay – Individual taxpayers can use Direct Pay for up to two payments each day. Direct Pay lets taxpayers pay online directly from a checking or savings account for free and schedule payments up to 365 days in advance. They’ll receive an email confirmation of their payments.
  • Electronic Federal Tax Payment System (EFTPS) – The best payment option for individual taxpayers or businesses making large payments is the EFTPS, which allows up to five payments per day. The system requires enrollment. Taxpayers can schedule payments up to 365 days in advance and opt in to receive email notifications about their payments.
  • Electronic funds withdrawal – Individual taxpayers and businesses can pay when they file electronically using tax software online. If they’re using a tax preparer, they can ask the preparer to make the tax payment through an electronic funds withdrawal from a bank account.
  • Payment processor – Individual taxpayers and businesses can choose to pay with a credit card, debit card or digital wallet through a payment processor. Although processing fees apply, no part of those go to the IRS.
  • IRS Online Account – Individual taxpayers have the option to create and sign into an IRS Online Account to pay from there. Online Account allows taxpayers to view:
    • The amount they owe.
    • Payment history and any scheduled or pending payments.
    • Payment plan details.
    • Digital copies of select notices from the IRS.

End of IRS Material.

Zaher Fallahi, Tax Attorney, CPA, assists taxpayers nationwide with their Tax Preparation, Cryptocurrency tax, Gift Tax, Foreign Gifts, IRS Audits, Bank Secrecy Act (BSA), Anti-Money Laundering (AML) issues, FBAR, Undisclosed Foreign Bank Accounts, Streamlined Procedures, and other International Tax Matters. Tel.: (310) 719-1040, (714) 546-4272 and (877) 687-7558 toll free nationwide. Websites: zflegal.com and zfcpa.com E-mail taxattorney@zfcpa.com