Paying the IRS – When and How to Pay the IRS?

Paying the IRS | husband and wife reviewing documents

Paying the IRS

Paying the IRS | There will be no deadline extensions for taxpayers this year around. So, you shouldn’t wait for the last date to pay the IRS.

If you haven’t paid the IRS yet, here is how you can go through it.

Have You Prepared the Returns?

By now, you should have completed the tax preparations for a smooth filing experience. You have got a few days left if you haven’t already paid the IRS.

Tax preparation is a complex task and you should always seek expert advice to avoid any mishaps. Filing your tax returns and paying your owed taxes are two different tasks.

You can always combine both by filing and paying your taxes at the same time. However, you’ll need to ensure the accuracy of your filing before you make the payment.

Consult a professional CPA to prepare and file your taxes. Especially, if you have both business and personal tax filings.

Do You Need An Extension for Paying the IRS?

For 2021 tax filings, the due date is April 18, 2022. But you do not need to wait until the last moment. If you miss the deadline, you’ll incur interest and penalty charges from the IRS on top of your tax debt.

In some cases, taxpayers may require an extension for paying the IRS. You can apply for an extension through your tax agent or directly using form 4868.

Seeking an extension means you’ve time until October 15. However, you’ll still need to make a payment of your estimated tax obligation by April 18.

If you make an overpayment, you’ll get an IRS refund. Otherwise, you’ll need to settle the tax obligation.

You should only consider this option if you are not comfortable with your tax preparations right now. You can avoid any late fee penalties and interest charges if you apply for an extension.

Also, make sure to submit your tax filings before the extending deadline to avoid late fee penalties and interests.

How to Prepare for Tax Filing?

Whether you want to make estimated tax filings or individual income tax returns, you’ll need to make sure your filings are accurate.

Here are a few tips for you to prepare your tax filings before Paying the IRS:

  • Consult a professional like a CPA to help you prepare the tax returns properly.
  • Claim your tax credits and deductions wisely.
  • Back your deductions, expenses, and credits with proof.
  • Pay your estimated taxes on time for your business returns.
  • Include your all income resources and other income.
  • Keep an eye on the tax deadlines.
  • File and pay your taxes on time to avoid penalties and interest costs.

How to Pay the IRS?

Once you have prepared tax returns yourself or with the help of a CPA, it’s time to file and pay to the IRS.

IRS Direct Pay

You can directly pay taxes through your savings or checking account. It is an online method of transferring funds at no cost to you.

You can make one payment within 24 hours using this method.

The Electronic Federal Tax Payment System (EFTPS)

The EFTPS is operated by the US treasury department. It facilitates taxpayers to make payments to the IRS.

Users would need to create a profile or account before making a payment though.

Through Check

A conventional method of paying taxes is to send a paper check to the IRS. However, as it may take a few days and clear the check, you should take care of the due date when using the paper check method.

Electronic Funds Transfers

If you are e-filing, you can also use the electronic fund transfer method. It is a similar method to direct pay where you debit your bank account and transfer funds to the IRS online.

Through Debit or Credit Cards

The IRS now allows using a debit or credit card to pay taxes as well. So, you can use your magnet cards to clear the tax debt to the IRS as well.

Post-Tax Filing – Claiming the Refund

Taxpayers consider their tax returns accurate and file. Yet most taxpayers expect a tax refund from the IRS. The average tax refund from the IRS last year was around $ 2,879 meaning you overpaid around $250 to the IRS.

Your tax refund should arrive within 21 days after filing your taxes. If not, you may get an email or notification from the IRS for any errors, taxes due, or other reasons justifying a delay.

Learn more about Paying the IRS with Ash CPA today! New clients are welcome.