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The Newsroom Topics
Issue Number: IR-2017-59
Inside This Issue
Tax Time Guide: Electronic Payment/Payment Agreement Options Available to Those Who Owe Taxes
WASHINGTON — The Internal Revenue Service today reminded taxpayers that it’s easier than ever to pay taxes electronically. For those unable to pay on time, several quick and easy solutions are available.
This is the seventh in a series of 10 IRS tips called the Tax Time Guide. Taxpayers can use these tips to find solutions to common tax issues as the April 18 tax deadline approaches.
Taxpayers who owe taxes can now choose among several quick and easy electronic payment options, including the following:
Taxpayers can electronically request an extension of time to file. An extension of time to file is not an extension to pay. Taxes are still due by the original due date. Taxpayers can get an automatic extension when making a payment with Direct Pay, Electronic Federal Tax Payment System or by debit or credit card. Select “Form 4868” as the payment type to receive the automatic extension.
Taxpayers who choose to pay by check or money order should make the payment out to the “United States Treasury.” To help ensure that the payment gets credited promptly, also enclose a Form 1040-V payment voucher. Also, print on the front of the check or money order: “2016 Form 1040”; name; address; daytime phone number; and Social Security number.
Taxpayers can view their federal tax account balances online. It’s safe, secure and available on the “Finding out How Much You Owe” page on IRS.gov. They can also access payment options or apply for an installment agreement on this page.
The IRS advises taxpayers to file either an income tax return or a request for a tax-filing extension by this year’s April 18 deadline to avoid late-filing penalties. This penalty can be ten times as costly as the penalty for paying late.
Taxpayers who owe, but can’t pay the balance in full, do have options. Often they qualify for one of several relief programs, including:
Other tips in the Tax Time Guide series are available on IRS.gov.