Paying Your Tax Bill Just Got… Convenient

By Chuck | April 15, 2016
Posted in: Misc

Paying your taxes just got a little more convenient thanks to a new partnership with the IRS, ACI Worldwide’s OfficialPayments.com the PayNearMe Company, and 7-Eleven.

Yep, 7-Eleven.

Taxpayers can now fill up, grab a Slurpee and pay the IRS at one of 7,000 7-Eleven locations in 34 states. How convenient!

The IRS is trying to make paying your tax bill as convenient as possible so why not partner up with a national convenient store chain to do so? Who wants to pay their tax bill at a gas station? Taxpayers who don’t have access to a bank account and need to pay their tax bill in cash. In years prior, a taxpayer in that situation would have to travel to an IRS Taxpayer Assistance Center in order to pay their bill in cash.

As a tax preparer, it’s important to know all of the payment options available to your clients. For this particular option, it’s important that taxpayers know not to wait until the last minute as there are a few steps to take before forking over cash at a local 7-Eleven. Instructions can be found on the IRS.gov payments page. The taxpayer needs to select the cash option in the “other ways you can pay” section and follow the instructions. The process is a three step process where the IRS must first verify the taxpayer information and email a code the taxpayer will need in order to make their payment.

Know the options

While this new payment feature is great, it’s certainly not the best option for everyone. It’s important to know all of the options available. In general, the electronic payment options are most convenient for taxpayers with bank accounts. Here is a rundown of IRS payment options:

  • Electronic funds withdrawal allows taxpayers to E-file and pay from their bank account when using tax preparation software or a tax professional. EFW is only available when e-filing.
  • Direct Pay. Available at IRS.gov/directpay, this free online tool allows individuals to securely pay their income tax directly from checking or savings accounts without any fees or pre-registration. Payments can be made 24 hours a day and scheduled up to 30 days in advance. Any taxpayer who uses the tool receives instant confirmation that their payment was submitted. Direct Pay has successfully processed more than 10 million payments totaling over $30 billion since its debut in 2014.
  • Credit or debit card. Taxpayers can pay online, by phone or using their mobile device through any of the authorized debit and credit card processors. A convenience fee is charged by the processor. The IRS doesn’t receive or charge any fees for payments made with a debit or credit card. Go to www.IRS.gov/Payments for authorized card processors and their phone numbers.
  • IRS2Go. TheIRS2Go mobile app is free and offers taxpayers the option to make a payment with Direct Pay, or by debit or credit card through an approved payment processor for a fee.
  • Electronic Federal Tax Payment System. This free service gives taxpayers a safe and convenient way to pay individual and business taxes by phone or online. To enroll or for more information, call 800-316-6541 or visit www.eftps.gov.
  • Cash. Taxpayers without bank accounts or if cash is their only option can pay using the new PayNearMe option. Payments are limited to $1,000 per day, and a $3.99 fee applies to each payment. Because PayNearMe involves a three-step process, the IRS urges taxpayers choosing this option to start the process well ahead of the tax deadline to avoid interest and penalty charges. The IRS offers this option in cooperation with OfficialPayments.com/fed and participating 7-Eleven stores in 34 states. Details, including answers to frequently-asked questions, are at gov/paywithcash.

 

 

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