Owe The IRS? Here Are Some Options For Paying Your Taxes—Now, Or Over Time
Now that Tax Day is (mostly) behind us, some taxpayers may be looking at the next step with a bit of dread: paying your tax bill. After you file, there are payment options available, including options if you can’t pay at all.
Here’s what you need to know.
If You Can Afford To Pay Your Taxes Now...
Pay by check or money order.
The reports of the death of payment by check are greatly exaggerated. Last year, President Trump signed Executive Order 14247, which requires federal agencies, including the IRS, to stop issuing paper checks by September 30 in favor of direct deposit, prepaid cards, and other digital payment options. Eventually, incoming payments, including tax liabilities and fees, will also be phased out in favor of electronic methods. But for now, checks will still be accepted.
To pay by check or money order, make it payable to U.S. Treasury. Make sure that it includes the following information: your name and address, your daytime phone number, the tax year the payment is for, the related tax form (for a regular tax payment, that’s Form 1040), and your Social Security number, employer identification number, or individual taxpayer identification number on the memo line. To make sure that your payment is credited properly, mail your check together with Form 1040-V, Payment Voucher. And, while you can use a private delivery service, the IRS encourages you to use regular mail.
And you’ll want to plan carefully if you owe big: the IRS won’t accept single checks or money orders of $100 million or more.
If you prefer to pay in cash, the IRS has partnered with VanillaDirect at participating retail stores like Dollar General, Family Dollar, CVS Pharmacy, Walgreens, 7-Eleven and Walmart (fees apply). You can find a map of participating locations here.
You can pay up to $500 per payment, and there’s no daily limit on the number of payments. Some other limits may apply.
Pay directly from your bank.
Direct Pay is a free IRS service that lets you make tax payments online directly from your bank account to the IRS. It’s free, and no sign-in is required. The best part? You can schedule your payment in advance (you can also change or cancel it within two days of the scheduled payment). To pay, choose the “Make a Payment” option on the main Direct Pay page. You’ll then select the reason for your payment (such as balance due), and the tax year to which it should be applied.
There are some limits to note. Direct Pay is only available Monday to Saturday,........
