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Tax Links
IRS Announces
"Dirty Dozen" Top Tax Scams
Don't Miss These Valuable Tax Deductions
Tips and
Taxes: What You Need to Know
Deducting
Employee Business Expenses
Kiddie Tax
Changes and Other Child-Related Tax Questions
Convenient Electronic Tax Payment Options
Standard
Deduction or Itemizing: Which Is Right for You?
Tax Check: Is
Your Filing Status Accurate?
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1.
ELECTRONIC FUNDS WITHDRAWAL
Electronic funds withdrawal (EFW) can be used by
taxpayers who file electronically, either on their own or through a
paid tax preparer. When you choose the electronic funds withdrawal
option, you are authorizing the US Treasury Department to transfer
the specified payment amount from your bank account to the
Treasury’s account. The IRS does not charge a fee for electronic
fund withdrawals, but your bank may.
You will need to provide your account number, type of account
(savings or checking), and your financial institution’s routing
transit number. This number can be found along the bottom of your
check.
You may select the payment date on which you would like the funds to
be withdrawn from your account. This means you can file your return
early and keep the money in your account until the payment due date.
The transaction will show up on your bank statement as “United
States Treasury Tax Payment.”
2. CREDIT CARD PAYMENTS
You can pay your taxes by credit card whether you file
electronically or on paper. Credit card payments can be made by
phone, online, or when e-filing, using a Visa® Card, American
Express® Card, Discover® Card, or MasterCard®.
The IRS has contracted with several credit card payment service
providers to offer this payment option. These providers charge a
service or “convenience” fee based on the amount of the payment and
will inform you of the amount before you authorize the payment. This
fee, which may vary by service provider, is a non-deductible
personal expense.
When paying by phone using your credit card, a recorded script
prompts you through the required steps. When paying via the Internet
or tax preparation programs, the software guides you through the
process. A confirmation number is provided at the end of the phone
or Internet transaction.
Your tax payment will be listed on your credit card statement as
"United States Treasury Tax Payment" as proof of payment. The
convenience fee is listed separately on the statement, generally as
a "Tax Payment Convenience Fee."
Keep in mind that if you charge your tax payment, but don’t pay off
your credit card balance in full, you’ll end up paying interest.
3. ELECTRONIC FEDERAL TAX PAYMENT SYSTEM
The Electronic Federal Tax Payment System (EFTPS) is a
free service offered by the U.S. Department of the Treasury. It
allows you to make tax payments through the Internet, or by phone.
You can use it to pay taxes associated with more than 20 tax forms,
including amended returns and estimated tax payments. This option is
especially convenient for taxpayers who make more than one tax
payment per year. You can enroll for this service at
www.EFTPS.gov
or by calling the EFTPS at (800) 555-4477.
Here's how it works. To make a payment, you access EFTPS directly,
24 hours a day, seven days a week, and request that funds be moved
from your account to the Treasury's account. This must be done by
8:00 P.M. (EST) at least one day in advance of the payment due date.
You can schedule payments up to 365 days in advance of the due date.
The funds are not moved from your account until the date you
indicate. You receive an immediate acknowledgement of payment, and
your bank statement confirms the payment was made.
If you have any questions about these payment options, a CPA can
help.
Brought to you by the North Carolina
Association of Certified Public Accountants in cooperation with the AICPA.
©2007 The American Institute of Certified Public Accountants |
