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How to Make IRS Payments for Your Taxes

August 17, 2018

How to Make IRS Payments for Your Taxes: Credit Cards

When you owe after filing returns or have tax liability from previous years, you to have to pay the IRS with actual money, but how?

Check for these five qualities to make sure your tax pro is qualified and the best for you.

The 4 easiest ways to make IRS payments

It’s 2018, but the IRS won’t accept your Bitcoin, 3-D printed money, or Venmo. When you owe after filing returns or have tax liability from previous years, you to have to pay the IRS with actual money, but how?

The IRS makes a way for you to do it. Electronic payments are the most popular and preferred, used for 89 percent of returns in 2018, but many taxpayers prefer to pay offline. Review these methods to figure out how to make IRS payments that work for your financial situation.

1. Use IRS Direct Pay

For making payments to the IRS as an average taxpayer, one easy method is IRS Direct Pay. It can be used for filing individual tax bills or making estimated tax payments directly from your bank account (checking or savings) to the IRS. This feature has the added advantage of being free of charge. To use Direct Pay, you need to have a Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN).

As soon as you make a payment using Direct Pay, you get a confirmation notification that it has been submitted. The bank account information you provide is not stored in the IRS systems.

2. Electronic Federal Tax Payment System® (EFTPS)

Another secure payment method offered by the government is the EFTPS. Both businesses and individual taxpayers can use EFTPS to pay their taxes. To access the EFTPS website, you must have a secure Internet browser with 128-bit encryption. To log on, you must have the following three items:

  1. EIN or SSN
  2. EFTPS Personal Identification Number
  3. Internet Password

Using EFTPS, you can make income tax payments, employment tax payments, and estimated and excise tax payments. The site is available 24/7 and can be accessed via computer or smart phone. Additionally, you can schedule payments for up to 365 days in advance.

3. Payment by Check or Money Order

If you choose to pay via mail, then you can make your check, money order or cashier’s check payable to the U.S. Treasury. Include your name, address, SSN, daytime phone number, tax period and the tax notice or form number on your method of payment. Remember not to affix your check or money order to other documents.

4. Payment by Debit or Credit Card

To process payments made by debit or credit cards, the IRS uses standard service providers and business/commercial card networks. A processing fee is charged, which may be tax deductible. The fee varies depending on the service provider used. The IRS does not charge any fee for the transfer or the processing of the payment.

If you aren’t able to make your payment for whatever reason, contact a tax professional who can help you find the best solution for your situation.

Tax Balance Due: 3 Steps to Address IRS Notice CP14

July 16, 2018

Tax Balance Due: 3 Steps to Address IRS Notice CP14

Unfortunately, filing your tax return isn't always your only contact with the IRS for the year.

Check for these five qualities to make sure your tax pro is qualified and the best for you.

Unfortunately, filing your tax return isn’t always your only contact with the IRS for the year. If the federal tax agency finds errors on your return that lead to an assessment, they will send Notice CP14 for collection. This isn’t a time to freak out as long as you follow the appropriate steps to address the issue.

If applicable, you’ll receive your “balance due” notice within four weeks of your return being processed. This letter is the first contact from the IRS to collect overdue taxes. If you ignore or neglect to pay what’s owed, then the IRS sends additional notices and begin aggressive collection actions, like liens and levies. Here are three steps to take when you get your “balance due” notice:

1. Review the Notice CP14 Details

The first thing to do when receiving Notice CP14 is to know why you received it. The notice includes the following:

  • The tax year for which taxes are due
  • The notice issue date
  • Your Social Security Number
  • IRS phone number
  • Tax amount owed
  • Payments and credits
  • Penalties charged on taxes owed
  • The final amount due to be paid
  • The deadline for paying the amount owed

The Notice CP14 also includes information on payment options, penalties, and interest.

Notice CP14 example

2. Determine If the IRS Is Correct

Before agreeing or disagreeing with the Notice CP14, check to see if your return had errors that led to the assessment of taxes due. If you find errors, you will need to pay the amount owed before the payment deadline in order to avoid further penalties and interest.

If you don’t see any errors or you find a different amount than what the IRS determined, you can call the IRS on the phone number indicated on the Notice CP14. An IRS representative will assist you in resolving the issue.

3. Pay the Amount Due

You can make the payment indicated on the Notice CP14 using IRS Direct Pay, a service that allows you to electronically pay your taxes directly from your savings or checking account. Alternatively, you can pay by credit or debit card.

If you can’t pay the full tax owed, either send a request to the IRS to receive up to an additional 120 days to pay or set up an Installment Agreement payment plan. An Installment Agreement allows you to pay your tax bill in fixed monthly installments. Get help from a tax relief professional before requesting your Installment Agreement to ensure you get the best tax debt resolution for your situation.

Notice CP14 - Payment example

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