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Well, there’s good news and bad news. The good news is you finished filing your taxes and you can move on with the rest of your life. The bad news is you owe money instead of getting a nice refund.
This is bad on two levels; one, you owe money, and two, it’s notoriously difficult to pay to the IRS. There’s a huge rigmarole to go through and you’re pretty sure you have to sign over your first-born. The IRS never makes things easy, right?
Actually this time you couldn’t be more wrong. There are several simple and fast ways you can pay your tax obligations.
This is by far the easiest and best way to pay your taxes. The Electronic Federal Tax Payment System is actually set up by the IRS as a secure and easy way to pay. Best of all, the system lets you set up payments on a regular basis for not only your federal taxes but also for things like your quarterly estimated taxes.
All you have to do is enter some basic info in the link provided above after clicking Enroll. This also involves entering your bank info so money can be instantly transferred. Now you can pay all you owe or set up payments to automatically come out. It honestly doesn’t get much easier.
Here’s a step-by-step guide to setting up EFTPS.
2. Credit Card
So you don’t want to set up a profile at EFTPS, as you expect to only pay the once. No problem! You can actually pay with a credit card as a one-time payment. If you have a payment that’s small enough you can immediately afford it, go for it.
However, there is one little issue: fees. You see, the IRS doesn’t take credit cards, payment processors do. These processors come with varying fees you’ll have to shell out in order to pay off your tax obligations. Luckily they’re generally only a couple bucks, though, although if you have a substantial tax bill you may end up paying a big chunk in fees, too.
3. Payment Plan
Can’t pay it all at once and don’t want to set up a profile on the EFTPS? Then you need a payment plan, which is surprisingly easy to get. Simply submit Form 9465 (also Form 433-F if you owe more than $50,000) and you’ll have a payment plan ready to go.
The money will simply deduct from your account every month on whatever date you decide. Also, because the IRS wants their money, the payment plans are generally approved without a hitch. After you submit the form you should get notice back in a few weeks. The payments will then continue through when you’ve successfully paid everything off.
One thing to keep in mind is next year if you incur more tax obligations you must submit a new payment plan. The new total isn’t added to the payment plan automatically and assuming it will might land you in hot water. Just be sure to send in a new Form 9465 to create a brand new plan.
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