IRS Direct Pay - A New Way to Pay Your Taxes

By: Artemio "Art" Lopez, CPA (Posted: 12/15/2014)

In May 2014, the IRS announced the start of its new online payment system called IRS Direct Pay. The new IRS Direct Pay allows taxpayers to pay their tax bills on their individual tax return, installment agreements, proposed IRS assessments, amended returns, or make their quarterly estimated payments directly from a checking or savings account through its secure website. There are no fees associated with this program and preregistration is not required. Direct pay allows taxpayers to schedule their payments up to 30 days in advance. On September 10, 2014, the IRS announced that over one million tax payments totaling $1.7 billion had been processed through Direct Pay since it went into effect.

Direct pay cannot be used to pay business taxes. Taxpayers who want to pay their business taxes online have to enroll in the Electronic Federal Tax Payment System (EFTPS).

There are five steps to making a payment online.

  1. Provide your Information - First you indicate the type of payment being made and the tax year.
  2. Verify your identity - You then provide your information, such as name, social security and date of birth, and filing status.
  3. Enter payment information - Once your identity has been verified, you need to indicate the payment amount and date you want payment to be made.
  4. Review and sign - You then review your information and electronically sign the payment agreement.
  5. Confirmation - You will receive a confirmation once the payment has been processed. It is important to print and save this information for your records.

Once the payment has been set up, a taxpayer can check the status, edit, or cancel the payment by selecting the "Payment Look Up" link in the direct pay website and entering your social security number and the payment confirmation number. Payments can only be cancelled or edited before 11:59 P.M. eastern time two business days before the payment date.

Direct Pay can be found at http://www.irs.gov/Payments/Direct-Pay.