If after filing your business tax return you learn you still need to pay the IRS more in taxes, don’t fret. Listed below are a few different methods that allow you to easily pay what you owe on time.
Electronic Federal Tax Payment System
Electronic Federal Tax Payment System (EFTPS) is a system of paying federal taxes electronically using the internet. To be able to use EFTPS, taxpayers must enroll. Upon enrollment taxpayers enter their business information. This includes contact information and details of the financial institution where the funds are withdrawn. Taxpayers will receive an EFTPS PIN to use along with the EIN and password during log in. EFTPS accepts all types of federal tax payments including income, employment, estimated and excise taxes.
Electronic Funds Withdrawal
Electronic funds withdrawal (EFW) is an integrated e-file or e-pay option. This is an option only when filing your federal taxes using a preparation software or through a tax professional. Under this option, taxpayers allow the IRS to transfer funds from their account to the Treasury’s account. This method requires taxpayers’ banking information such as the bank name, account number, routing number and account type. When e-filing the tax return, the tax preparer submits the information needed for EFW. The tax payer can expect their funds withdrawn on the date in which the EFW form specifies.
International Wire Transfer
An international wire transfer is a great option for international taxpayers who don’t have a US bank account. This allows the user to transfer funds directly from their foreign bank to the Treasury’s account. Taxpayers using this option should complete the Same-Day Taxpayer Payment Worksheet with the proper tax type code and tax period. They then must bring it to their bank for processing. The tax period and tax type code are important so that the IRS will be able to apply the payment to the correct IRS tax liability. Please note that to be effective, the foreign bank must have a banking relationship with a U.S. Bank. While this is available for anyone with a foreign bank account, it is not recommended since it is costly compared to other options.
Other options available are IRS Direct Pay, IRS2Go and pay by debit or credit card but these options are not available for payments of tax due on Form 1120 US Corporation Income Tax Return.
