Introduced last year during tax-filing season, the IRS offers Direct Pay, a free online tool that allows individuals to securely pay income taxes and make estimated tax payments or extension payments directly from a checking or savings account without any fees, registration or logins to remember. Available at http://www.IRS.gov/payments/Direct-Pay, this online tool offers individual taxpayers a fast and easy way to pay federal taxes.
It takes just five steps to make a payment:
- Provide your tax information
- Verify your identity using a prior year processed tax return
- Enter your payment information from checking or savings bank account (no credit cards accepted)
- Review and electronically sign the transaction
- Print or record your online confirmation number
Bank account information is not retained in the IRS system after a payment is made. This allows taxpayers to make payments without creating an account which would require a login and password. Because of this, however, you will need to verify your identity and reenter the bank account information each time you make a payment.
Since its debut, more that 2.8 million tax payments totaling over $6.3 billion have been received, all without the taxpayer writing a check, using a stamp or finding a mailbox. Direct Pay is available 24 hours a day, seven days a week, and taxpayers receive instant confirmation that the payment was scheduled. Payments can be scheduled up to 30 days in advance. Taxpayers can check the status of a payment by entering the confirmation number.
Direct Pay cannot be used to pay the federal highway use tax, payroll taxes or other business taxes. Taxpayers wishing to e-pay their federal business taxes should enroll in the Electronic Federal Tax payment System (EFTPS).
Click here for additional information on IRS Direct Pay. If you need any assistance setting up a payment, please contact your local CBIZ MHM tax professional.
Copyright © 2015, CBIZ, Inc. All rights reserved. Contents of this publication may not be reproduced without the express written consent of CBIZ. This publication is distributed with the understanding that CBIZ is not rendering legal, accounting or other professional advice. The reader is advised to contact a tax professional prior to taking any action based upon this information. CBIZ assumes no liability whatsoever in connection with the use of this information and assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.
CBIZ MHM is the brand name for CBIZ MHM, LLC, a national professional services company providing tax, financial advisory and consulting services to individuals, tax-exempt organizations and a wide range of publicly-traded and privately-held companies. CBIZ MHM, LLC is a fully owned subsidiary of CBIZ, Inc. (NYSE: CBZ).