Although no one enjoys paying taxes, the Internal Revenue Service (IRS) makes it as easy as possible for taxpayers to make payments. Specifically, the IRS has established three ways for taxpayers to make online or electronic payments, each of which is easy to use and more secure than mailing in a check.

Electronic Funds Withdrawal

Most taxpayers are familiar with electronics funds transfers, which are often used to pay bills or to shift money between accounts. The IRS allows for similar funds transfers to pay your taxes. However, to use this option, you must electronically file your tax return, through a tax professional or with tax preparation software. When you are ready to pay, an information screen will pop up for you to enter your financial information. Specifically, you must provide your bank account number, your bank's routing number and the type of account (checking or savings) you are using. Although paying your taxes this way is free, you must pay at the time you file your return, not after. In addition, once filed, your payment information cannot be changed, although you may be able to cancel your payment if it is scheduled for a future date.

Credit or Debit Card

There are two ways to pay your taxes online using a credit or debit card. First, similar to the electronic funds withdrawal method, you can e-file your return through a tax professional or tax preparation software, but when you input your data in the financial information sheet, you will use your credit or debit card number instead of your bank information. Alternately, you could go to the Official Payments website, the authorized IRS payment provider, to make your federal payments online. Either way, you will be charged a convenience fee of 2.35 percent of your payment if using a credit card, or a flat fee of $3.95 if using a debit card.

Electronic Federal Tax Payment System

The Electronic Federal Tax Payment System (EFTPS) is a way you can make federal tax payments free of charge, 24 hours a day, seven days a week, via the internet or telephone. With the EFTPS, you can make payments whenever you want, not just quarterly or annually, and you can schedule payments in advance. To use the EFTPS, you must first enroll, via the EFTPS website or an IRS customer service number. After enrollment, you must log in to the system and verify your identity using three pieces of unique information known only to you. Specifically, you must provide your taxpayer identification number, EFTPS personal identification number (PIN) and an Internet password. Once you are in the system, follow the website instructions to fill in the amount of your payment and your selected pay date. As you can make all of your federal tax payments online, including excise, employment, income and estimated taxes, you will have to select the type of payment you want to make from the drop-down menu. Verify that your information is correct, then click the designated button to set up your payment. If you schedule a payment for the future, you can change or cancel it at any time up until two business days in advance of the payment.

Source:

IRS.gov: Pay Taxes by Electronic Funds Withdrawal

IRS.gov: Pay Taxes by Credit or Debit Card

IRS.gov: EFTPS

More Information:

IRS.gov: Electronic Payment Options

Officialpayments.com: Pay Your Federal Taxes Online