IRS tips on payment options May 2019 Tax News

Most taxpayers are being affected by major tax law changes. While most will get a tax refund, others may find that they owe taxes. Those who owe may qualify for a waiver of the estimated tax penalty that normally applies. See Form 2210 and its instructions for details.

How to make a tax payment

Taxpayers should visit the “Pay” tab on IRS.gov to see their payment options. Most tax software products give taxpayers various payment options, including the option to withdraw the funds electronically from a bank account. These include:

  • IRS Direct Pay offers taxpayers a free, fast, secure and easy way to make an electronic payment from their bank account to the U.S. Treasury
  • Use an approved payment processor to pay by credit or debit card for a fee.
  • Mail checks or money orders made out to the U.S. Treasury
  • Make monthly or quarterly tax payments using IRS Direct Pay or through the Electronic Federal Tax Payment System

Can’t pay a tax bill?

Everyone should file their 2018 tax return by the tax filing deadline, regardless of whether they can pay in full. Taxpayers who can’t pay all their taxes have options including:

  • Online Payment Agreement — Individuals who owe $50,000 or less in combined income tax, penalties and interest, and businesses that owe $25,000 or less in payroll tax and have filed all tax returns may qualify for an Online Payment Agreement. Most taxpayers qualify for this option and an agreement can usually be set up on IRS.gov in a matter of minutes.
  • Installment Agreement — Installment agreements are paid by direct debit from a bank account or a payroll deduction.
  • Delaying Collection — If the IRS determines a taxpayer is unable to pay, it may delay collection until the taxpayer's financial condition improves.
  • Offer in Compromise (OIC) — Taxpayers who qualify enter into an agreement with the IRS that settles their tax liability for less than the full amount owed.

Your clients can find answers to questions, forms and instructions, and easy-to-use tools online at IRS.gov. They can use these resources to get help when it’s needed at home, at work, or on the go.