- Personal Finance
How You Pay your Tax Payments Option?
If you are unable to pay your owed tax by you filing due date, you have to pay a penalty and interest on the balance amount. It is necessary for the tax payer to pay their taxes timely in order to avoid the penalty. There are various methods by which the tax payers can pay the taxes. In these days making the tax payment electronically is considered as the most convenient method of payment.
You can check the IRS website to check the electronic payment options. IRS has am IRS2Go app, by which the individuals can pay taxes. The electronic payment can be done online or by phone. This mode of payment is very convenient way for paying taxes. It gives the maximum security to the taxpayers while paying taxes. `
The tax payers can schedule their payment in advance, and after they submit the payment, they will receive confirmation. The best thing about this mode of payment is that it’s quick, and much faster than mailing in a check or money order.
Direct Pay is an effective service that helps the tax payers pay their current and prior year 1040 series tax returns with security. This method offers the facility to pay directly from the checking or savings account without any cost. After the payment is submitted, the tax payer will receive an instant confirmation that the payment has been submitted.
DirectPay has a feature known as the "Look Up a Payment" feature that helps the taxpayers to view their payment status. They can modify or cancel their payment there until two business days before their scheduled payment date.
If the taxpayer chooses to pay by mail, they should enclose a check or money order with their tax return copy or notice. Pay it to the United States Treasury with their name, phone number, address, SSN, form number and on the front of their payment. If it is difficult for the taxpayer to pay in full amount, they can reduce the accrual of interest on their account.
The taxpayers who are unable to pay in full can apply to qualify for the additional time i.e. up to 120 days.
FATCA & US taxes helps in increasing the transparency for the IRS with respect to the people of the US who are investing and earning money through non-US organizations. The main purpose of the foreign account compliance act is to get their information it imposes tax withholding when the applicable documentation and reporting requirements are not fulfilled.
The taxpayers have the opportunity to pay the amount in installments. They can then pay in series of monthly installments. Some options offered by IRS by which monthly payments can be made include
- Direct debit
- Payroll deduction from your employer,
- Electronic Federal Tax Payment System (EFTPS),
- credit card via phone or Internet, or
- Check or money order.
Direct debit and payroll deduction help in making timely payments automatically. These are very convenient options by which a taxpayer can avoid the time and expense of mailing monthly payments.