How Do I Pay The IRS If I Owe Them?

The IRS offers a handful of ways to pay them of you need to pay them.  All payments to the IRS must be submitted or postmarked by April 15th.

Pay-uncle-sam-irs

The most popular payment method is still to mail a check or money order for the amount that you owe.  Do NOT send cash!

Helpful Tip:  Make all payments payable to “United States Treasury”

The best mailing address for payments to the IRS is:

Internal Revenue Service
P.O. Box 1214
Charlotte NC 28201-1214

This is not the only address to where you can make payments, but the Charlotte address is a good option if you are not sure where to mail your check.

IRS Direct Pay

Direct Pay is the newest and perhaps the best option to pay the IRS.  It allows you to pay directly out of your checking or savings account.  The link below will send you to the IRS Direct Pay option.

http://www.irs.gov/Payments/Direct-Pay

IRS-Direct-Pay

With IRS Direct Pay, you do not need to mail a check, you do not need to worry about your payment getting lost in the mail, and you do not need to worry about when the payment will be processed.

Simply go online and have your payment taken directly out of your bank account.

Paying The IRS By Credit Card pay-IRS-by-credit-card

As a last resort, you are able to pay the IRS via credit or debit card.  Beware of the added fees though.

In addition to flat fees that start between $2.49 and $3.50, credit card payments to the IRS also include a percentage fee that ranges from 1.87% to 2.35%.

So if you owe the IRS $1,000 in taxes on April 15th, paying via credit card will cost you a minimum of $21.19 in extra fees.

For more details on paying by credit card, visit http://www.irs.gov/uac/Pay-Taxes-by-Credit-or-Debit-Card

Can I not file & not pay and just handle it next year?

Sure.  But why would you make such a poor financial decision?  Why would you ever want the IRS thinking that you owe them money?  Why would you want to be subject to the interest, the penalties, and the interest on those interest and penalties?

In an act of desperation, many Americans ignore their debt to Uncle Sam and opt to “handle it next year.”  But if you owe the IRS this year, what makes you think you will get a refund next year?  On top of that, what makes you think that refund will be large enough to cover what you owe after the penalties and interest?

Don’t put off debts to the IRS.  The aggravation is not worth it.