The IRS is pretty flexible on how to pay them, however, I have seen several clients have issues with payments to the IRS this past year. So, here is my opinion:
There are several ways to pay the IRS:
- Electronic Payment: The IRS offers electronic payments at www.irs.gov/payments Make sure you go to the irs.gov website. They give you two options,
- Pay Now with Direct Pay. This is an ACH debit. I personally, consider this the best option. Paying by ACH is safe. Make sure you indicate correct type of tax and the tax period. Save the confirming email.
- Pay Now by Card or Digital Wallet. This is done through a third party, not the IRS. The credit card costs about 2%, so it’s a wash on any potential credit card points. If you can’t pay the IRS, then setup an installment plan. Installment plans are automatically approved for under $50,000. There is only a small fee and the interest is much more reasonable compared to a credit card. They offer paying with your debit card for a couple of dollars. Since its through a third party, I still prefer the first option.
- Check in the mail. If you mail a check make sure you put your social security number on the check and the tax year. The check should NOT be sent first class mail. If you use USPS mail it certified and return receipt, or if you use another carrier, make sure you get signatures. Also, do not deposit the mail in a blue box or your personal mail box. Take the envelop with the check to the post office.