IRS Direct Pay System

Larry Villano, Publisher of Loopholelewy.com

The new Direct Pay payment system, which debuted earlier this year, has already processed more than one million tax payments totaling over $1.7 billion during 2014, according to the IRS.

IRS Direct Pay only accepts 1040 return series payments. Additional payment types will likely be added to the application in a future release. You can make a tax payment towards a 1040 tax return for the last 20 years (e.g., 1993 - 2013) for most of the Reason for Payment options. There are two exceptions - (1) Estimated Tax Payments and (2) Requests for Extension of Time to File.

The Internal Revenue Service is encouraging anyone facing upcoming tax payment deadlines to consider choosing this free online system to quickly and easily pay the tax owed. For example, if you filed for an extension to file your return October 15 and have determined that you owe taxes, consider using Direct Pay.

Direct Pay vs EFTPS

Direct Pay is different from the EFTPS (Electronic Federal Tax Payment System). While you can use either application to make tax payments online, IRS Direct Pay does not require a registration process.

How to Access Direct Pay

Direct Pay may be accessed through the Pay Your Tax Bill icon on IRS.gov. Individuals can e-pay their tax bills or make quarterly estimated tax payments directly from checking or savings accounts without any fees or pre-registration. Direct Pay allows taxpayers to schedule payments up to 30 days in advance.

How the IRS Verifies Your Identity

The IRS verifies your identity by using one of your prior year processed tax returns. You will need to verify your identity each time you use IRS Direct Pay. In a future release, you may only have to verify your identity once if you register with IRS Direct Pay.

It takes two business days to process your payment. Payments submitted after 8 p.m. eastern will begin processing the next business day. Hold on to your confirmation number until your payment is processed.

Payments Against an Installment Agreement

If you are making a payment against an installment agreement, consider using the Online Payment Agreement application to set up recurring payments.

U.S. Bank Routing Number Required

IRS Direct Pay requires a U.S. bank routing number (ABA). This nine-digit number is generally printed on checks or is available from your bank. If you have an account with an international bank that has a U.S. affiliate, the bank may be able to provide the routing number.