New And Improved IRS Payment Process – IRS Direct Pay
The IRS has an electronic payment system called EFTPS. It’s useful, and once you’re enrolled in it, it works reasonably well. But what if you want to make an estimated tax payment today and you aren’t enrolled in EFTPS? Good luck. It’s a time consuming and arduous process that can last 7-10 days. Even longer if you are located outside of the U.S.
But alas there is good news! The Internal Revenue Service has rolled out a new Web-based system, IRS Direct Pay which lets taxpayers pay their tax bills or make estimated tax payments directly from checking or savings accounts without any fees or pre-registration (unlike the EFTPS payment system).
The Convenience Of IRS Direct Pay
Taxpayers can make payments from the convenience of their home computer with the security and confidence that the tax check won’t get lost in the mail and immediate gratification that the payment has been made and received by the IRS. At Tax Samaritan, our opinion is that this latest effort by the IRS to improve their online tools and payment process is a definite simplification for taxpayers.
The system is available 24 hours a day, seven days a week. Bank account information is not retained in IRS systems after payments are made. Payment history information is generally updated three weeks after a payment has been made.
How To Access IRS Direct Pay
Accessing the IRS Direct Pay is simple. Go to the IRS home page, and select “Pay Your Tax Bill.” The system will then walk the taxpayer through five steps:
- Provide your tax information
- Verify your identity
- Enter your payment information
- Review your tax/payment information
- Electronically sign and record online confirmation
IRS Direct Pay offers 30-day advance payment scheduling, payment rescheduling or cancellations, and a payment history status search. Payments can be made by credit card, debit card and by electronic withdrawal from a U.S. bank account.
The IRS plans to eventually include an option for payment confirmation via e-mail, a Spanish version of the system, and a one-time registration with a login and password to allow quick access for returning taxpayers.
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Tax Samaritan is a team of Enrolled Agents with over 25 years of experience focusing on US tax preparation and representation. We maintain this tax blog where all articles are written by Enrolled Agents. Our main objective is to educate US taxpayers on their tax responsibilities and the selection of a tax professional. Our articles are also designed to help taxpayers looking to self prepare, providing specific tips and pitfalls to avoid.
When looking for a tax professional, choose carefully. We recommend that you hire a credentialed tax professional such as Tax Samaritan that is an Enrolled Agent (America’s Tax Experts). If you are a US taxpayer overseas, we further recommend that you seek a professional who is experienced in expat tax preparation, like Tax Samaritan (most tax professionals have limited to no experience with the unique tax issues of expat taxpayers).
Randall Brody is an enrolled agent, licensed by the US Department of the Treasury to represent taxpayers before the IRS for audits, collections and appeals. To attain the enrolled agent designation, candidates must demonstrate expertise in taxation, fulfill continuing education credits and adhere to a stringent code of ethics.
Every effort has been taken to provide the most accurate and honest analysis of the tax information provided in this blog. Please use your discretion before making any decisions based on the information provided. This blog is not intended to be a substitute for seeking professional tax advice based on your individual needs.