As you may be aware, you can pay your income taxes by credit card (1); however, you are responsible for a 2.49% add on fee. You can pay by credit card by phone at (888) 729-1040 or on the web at www.pay1040.com for federal taxes or (800)-272-9829 or on the web at www.officialpayments.com for federal, state or local property taxes.
There are 2 other ways in which to pay your taxes electronically. First is the Electronic Funds Withdrawal (EFW) (2) and the second is the Electronic Federal Tax Payment System (EFTPS) (3). These 2 ways have no fees as these are direct withdrawls from your bank accounts. To use the EFTPS you must register as an individual and/or a business separately with the IRS and wait for a pin number that can take about 2 weeks. The difference is that you can pay all federal personal and business taxes on line.
The EFW plan is set up when you e-file your tax return, you can authorize that the taxes are withdrawn from your checking or savings account. The EFW program is only available through your tax professional or tax software. The toll free number is (888) 353-4537 which can be called 24/7 for information regarding a payment or to cancel a scheduled payment (to cancel a payment you maust call by 8 p.m. 2 business days prior to the withdrawal date.
The EFTPS gives you more control of thepayments and due dates. The following taxes can be filed electronically or on the telephone (the numbers beside the form description refer to which of the 3 methods can be used for each type of tax):
(1) credit card
Form 1040 – individual income tax return; (1), (2) (3)
Form 4868 – extension for individual income taxes;(1), (2) (3)
Form 1040-ES – estimated taxes for individuals (you can schedule up to 4 withdrawals on the due dates of the estimates, April 16, 2007 (April 17 2007 in Massachusetts and Maine), June 15 2007, September 17, 2007 and January 15, 2008; (1), (2) (3)
Form 1041 – income tax returns for estates and trusts; (3)
Form 940 – unemployment taxes; (1), (2) (3)
Form 941 – quarterly employment taxes; (1), (2) (3)
Form 944 – employers annual federal tax return; (1), (2) (3)
Form 1120 – corporate income tax returns; (1) (3)
Form 1120S – “S” Corporation returns; (1) (3)
Form 1065 & 1065B – partnership & limited liability Companies returns (1) (3)
Form 7004 – extension for corporate returns; and, (1) (3)
Form 990-PF – income tax return for private foundations; (1) (3)
Most states have also added on-line payments to their system. You should check with your state’s department of revenue to set up their payment process. IRS links to all state’s department of revenue.