Schedule Individual and Business IRS Tax Payments Online
Tired of mailing checks to the IRS for tax balances due or quarterly estimates? Wish the IRS would move into the 21st century and provide an alternative to the archaic days of tax payment via checks? If so, you need to be aware of the IRS’s Electronic Federal Tax Payment System, or EFTPS. This system is a secure, easy, and free way to make payments directly to the IRS.
How to Register Online
The process is simple and takes just a few minutes to register online (although you’ll still need to wait 7 days for the IRS to physically mail a PIN to you). Here are the basic steps to register as an individual or business, the payments that can be made and the benefits of enrolling now:
First, if you are interested in enrolling as an individual or business, you can do so easily at www.eftps.gov. During the enrollment process, you will provide the bank information you plan to use going forward for online payments. You can always change the account used at a later time if needed. Once you complete this process, which should take 3-5 minutes, you will get the following notification electronically:
- Congratulations. Within seven days, you will receive in the mail:
- Your PIN
- Instructions on how to create an EFTPS Internet password
- Please note: We will mail your PIN to the IRS address of record for your employer identification number or social security number enrollment. That address may be different from the contact information you entered
- Your enrollment number is XXXXXXXXXXXXXXXXXX.
- Next Steps When You Receive the PIN
The second part of the enrollment, which should also take no more than 3-5 minutes, is to follow the instructions on the one-page letter received in the mail. You will use the PIN and enrollment number provided to login and create a password. Make sure you keep the PIN with your records as it is part of the login process going forward and cannot be changed.
Types of IRS Payments Online
That’s it! You are enrolled and can begin scheduling current and future tax payments online. You can make the following payments for the individual or business registered;
- 1040 individual income tax return balance due, extension payment due, estimated payments, notice balances due and audit adjustment balances due
- 1041 trust and estate income tax return balance due, extension payment due, estimated payments, notice balances due and audit adjustment balances due
- 1120 business income tax return balance due, extension payment due, estimated payments, notice balances due and audit adjustment balances due
- 706 estate tax return or 709 gift tax return payments due
- plus many more
Option to Schedule Tax Payments
There are some other benefits of registering and making payments online.
- You can securely schedule payments up to a year in advance (businesses up to 120 days in advance). This means in April you can pay online, both your current year balance due or extension and at the same time, you can schedule your quarterly estimates for the next year all at once.
- If things change, you can cancel any future payment scheduled up to two days before the date of the scheduled payment.
- You can review up to 16 months of prior payments made through their site to easily confirm what you did, or didn’t pay.
This by no means is a requirement but intended to provide other options for individuals and businesses tired of the current check-writing process. With the COVID-19 pandemic, we have seen long delays for the IRS cashing checks and handling mail, so this is a secure and efficient alternative going forward.
Another option, if you do not register in advance or do not want to register, is to use the IRS site to schedule a one-time payment. You can make a tax payment via bank account/debit card or credit card.
At Windham Brannon, we take our clients’ individual and business tax needs seriously and remain abreast of the rapidly changing information in today’s economic landscape. Do not hesitate to reach out to your Windham Brannon tax advisor or Doug Neal.