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Transcript: Online payment options

If you owe the IRS, the agency would like you to consider paying up electronically. Here's some tips on how to do just that.

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Electronic funds withdrawal is essentially a direct debit from either your checking or savings account. In most instances, EFW is free and fast and you can schedule the payment -- as long as it's by the April due date.

Another payment option is to "charge it" by using your debit or credit card. Official Payments and Link2Gov remain the two IRS-approved plastic processors. Both companies accept payments from electronic as well as paper filers, either via phone or the Internet, in Spanish as well as English.

And last, but not least, is the Electronic Federal Tax Payment System. EFTPS is a free service and is available year-round. You must, however, enroll and get a personal identification number and password before you can use the service. It's a two-step process that involves a confirmation sent through the postal service, so don't wait until the last minute if this e-payment option appeals to you.

For more information on electronic tax options, check out Bankrates's Tax Guide.

Bankrate.com's corrections policy
-- Posted: March 18, 2009
 
 
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