Two Convenient IRS Electronic Payment Options For Taxpayers

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According to a recent Forbes’ article “IRS Faces Huge Backlog of Unopened Mail As Workforce Returns,” the estimated backlog of unopened IRS mail was at 11 million pieces as of June 2020. Perhaps the largest regular check mailer in the country is the Federal Government itself, which issues over 437 million checks a year. Of those, 1.4 million checks are lost or stolen every year. (New York Times, “When the Check Is Not in the Mail”). To avoid these IRS delays, HM&M encourages the use of an electronic payment system. Making electronic payments to the IRS has always been a good idea, but now more than ever, it is a smart move. HM&M is happy to assist with the set up and implementation.

There are two free online tax payment options that are available to taxpayers: IRS DirectPay and EFTPS (Electronic Federal Tax Payment System). Click below to access either.

IRS Direct Pay EFTPS

 

At this time, the IRS DirectPay is limited to individual taxpayers only. It does not require registration and offers a fast and free way to pay directly from a checking or savings account as well as a credit or debit card for a fee. A confirmation of timely payment is received right away by the taxpayer and the payment can be made on the day of the deadline. IRS DirectPay cannot be used for any business tax payments including trusts since those also have an EIN (Employer Identification Number).

EFTPS can be used to pay any type of federal tax. EFTPS requires prior registration – employers can enroll at EFTPS.gov, or by calling EFTPS Customer Service at 1-800-555-3453. EFTPS can also be used by payroll service providers and other authorized third parties, such as HM&M, to make payments on behalf of their clients.

EFTPS advantages include:

  • Pay taxes online 24/7 from your home or office – no check writing, no stamps, no standing in line at the post office, no lost or stolen checks in the mail. All you need is internet access. For your convenience, you can also make EFTPS payments via the telephone.
  • Secure government system. The amount of money you specify is debited from your bank account on a date you have chosen. The government does not take any additional amounts.
  • Receive immediate electronic payment confirmation, thus, avoiding late fees and penalties.
  • Schedule payments ahead of time and keep track of your payment history. You can schedule a payment up to 365 days in advance.

A few things to remember about EFTPS:

  • The service can only be used for payments after enrollment and acceptance, and this process can take up to two weeks from registration to activation.
  • The initial online registration is followed by a letter from the U.S. Department of the Treasury that includes verification of the bank account and a unique personal identification number (PIN).

 

Three easy steps to enroll in EFTPS:

  1. Submit enrollment at EFTPS.gov or let HM&M do the work for you
  2. Create a password and verify your banking information
  3. Make an initial EFTPS payment

For more information feel free to call your HM&M trusted advisor or contact us.

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