There are various payment methods provided by the IRS for the payment of any due taxes.
You can therefore choose the most convenient options to make you payments.
Some of the options provided are explained here: Electronic Funds Withdrawal You can make payments for any taxes due as per your tax returns by requesting for an automated Direct Deposit or Electronic Funds Withdrawal, which means having your account directly debited with the amount you owe.
You however need to provide the IRS with your complete bank account number (including the routing number) of your bank or financial institution.
However, your bank needs to have allowed for such Electronic Funds Withdrawal payments.
Check Payment With Returns While preparing your tax returns, you may discover that you owe unpaid taxes.
There are various ways in which such taxes can be paid off.
You can attach a money order or a check to your tax returns.
Such a check should clearly include your names, physical address, year of taxes being paid, Social Security number, daytime telephone number, and your specific returns form number.
These details should be written on the front of the check.
For payments of taxes of a joint tax return, the Social Security number to indicate is the first number that was given in the joint application.
Payments to IRS Office You can also make the IRS payment directly to the IRS offices at their various local locations.
You can then file the receipt received from the IRS office as your supporting documentation for the taxes paid.
Credit Card Payments You can also make payments by credit cards.
This option of payment is made through various third party agents authorized by the IRS to collect credit card payments.
These credit card tax payment services include Official Payments Corporation, Link2Gov Corporation, and RBS WorldPayl.
You can call these corporations to provide your credit card payment or alternatively go to their websites and make your payments from there.
These companies charge non-standard fees (you can check for applicable fees from their websites).
Payments of Estimate Taxes Estimated IRS tax payments are tax payments made by individuals, partnerships, and businesses for the current tax year and such amounts paid are offset against the tax amount determined at the end of the year from the audited reports.
An "Estimated Tax for Individuals" Form 1040-ES needs to be filled out when individuals are making such a prepaid tax installment.
Such a payment should not be included in your tax returns.
Dishonored Checks If checks paid to the IRS are dishonored, the IRS will normally send you a Letter 608C "Dishonored Check Penalty Explained" with details of the dishonored payment.
In some cases, the clearing house may resubmit the check and if there are funds in your account at the time of resubmission (the check will clear and no penalty fees will apply).
On the other hand, the check may be dishonored and penalties will then apply.
In this case, the penalties and unpaid taxes will be added to your tax account and the IRS will notify you of the due amount.
Therefore, it is best not to act after receiving the Letter 608C and wait to see if the check gets paid or ultimately gets dishonored.
The IRS will charge penalties of 2% of the check amount with a minimum of $25.
00 for such checks.
In some cases, the IRS can cancel the penalties upon request.
Stop payment requests will also attract a penalty that is only abated under very few circumstances.