Tax Dictionary – IRS Payments

IRS Definition

If you owe federal tax, the IRS offers many easy ways to pay:

  • Direct Pay.
  • Pay by Debit or Credit Card.
  • Use IRS2Go.
  • Pay When You E-file.
  • Choose Other Options to Pay. The IRS offers other ways to pay:
    • Use the Electronic Federal Tax Payment System to pay your taxes online or by phone. This free system provides security, ease and accuracy. To enroll or for more information, call 888-555-4477 or visit EFTPS.gov.
    • Pay by Check or Money Order. Make the check, money order or cashier’s check payable to the U.S. Treasury.
  • Can’t Pay Now? If you are unable to pay in full, you have options:
    • Apply for an online payment agreement to pay your tax liability over time. Use the IRS.gov tool to set up a direct debit installment agreement. With a direct debit plan, there is no need to write a check and mail it each month.
    • Owe more than you can afford? An offer in compromise may allow you to settle for less than the full amount you owe. It may be an option for you if you can’t pay your full tax liability. It may also be an option if paying in full creates a financial hardship. Not everyone qualifies. Use the Offer in Compromise Pre-Qualifier tool to see if you are eligible for an OIC.

More from H&R Block

You have many options for paying your federal income taxes. While you can still write a check, there are multiple ways to pay your bill online. IRS Direct Pay allows you to pay your taxes through direct debit from your checking account or by credit/debit card (you do pay a fee for credit/debit card payments).

If you are unable to pay your tax balance in full by the due date of the return, you can request an installment agreement by filing Form 9465, Installment Agreement Request with your return or by using the Online Payment Agreement tool on irs.gov. The user fee for setting up an installment agreement is much smaller if you use the Online Payment Agreement.

Learn more about ways to deal with an IRS tax bill.

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