The Internal Revenue Service has reached the one million mark. In a statement released today, the IRS announced that it has processed over one million tax electronic payments to date through IRS Direct Pay. Those payments have totaled over $1.7 billion.
Direct Pay is available to individuals to pay tax bills or estimated tax payments over the web. There are no fees to use the service and payments come directly from your checking or savings account. The IRS does not retain your bank account information.
“Direct Pay is the latest addition to our growing array of online tools designed to serve taxpayers better,” said IRS Commissioner John Koskinen. “Direct Pay simplifies the payment process, enabling people to quickly and easily make a secure payment from the convenience of a home computer.”
It’s not just for tax filing season. With filing season out of the way, it’s now peak tax correspondence season. That means bills for unpaid taxes or additional tax assessments are in the mail. The IRS is encouraging taxpayers to make payments using Direct Pay to resolve those liabilities. Direct Pay is available online 24 hours a day, seven days a week.
If you need to make estimated payments for 2014, you can scheduled your September 15 payment now: Direct Pay allows taxpayers to schedule payments up to 30 days in advance. And, if like me, you’re on extension for your 2013 tax return (and will likely owe), you can pay using the system; ditto for those filing amended returns.
If you goof, you can edit or cancel your payment so long as it has not been processed. You have the option to edit or cancel a payment until 11:59 p.m. ET two business days before the scheduled payment date.
Not every one can use the system: Direct Pay cannot be used to pay business taxes. Electronic payments for business taxes are generally made through the Electronic Federal Tax Payment System (EFTPS).
Of course, Direct Pay banks on the idea that you have money in your account. If you don’t have the cash to pay, and you’d rather pay your tax bill via credit card, you can do that, too. The IRS uses third party processors for this service and those services will charge a processing fee (on the plus side, it’s likely tax deductible).
