Electronic Payment Options from the IRS 2025

Paying tax electronically is easier than ever in 2025. Various IRS electronic payment methods offer online and digital payment methods that help you pay your taxes quickly, securely, and on time. Electronic payments can save you from late-payment penalties and interest since your payment is received and confirmed immediately​.

With step-by-step instructions, this article will explain why electronic payments are beneficial and break down each IRS electronic payment option – from Direct Pay and EFTPS to mobile and card payments. We’ll also cover security features, common mistakes to avoid, any fees to be aware of, and which methods might be best for different situations (individuals, businesses, or those on payment plans). By the end, you’ll know precisely how to choose and use the best IRS payment method for your needs.

Why Pay Taxes Electronically?

Paying your taxes online or through other electronic methods comes with a lot of advantages:

• Speed and Timeliness:

Electronic payments are much faster than mailing a check. You can schedule or submit your payment instantly, and you’ll get an immediate confirmation that the IRS received it​. This helps ensure your tax payment is timely to avoid last-minute rushes or postal delays.

Even if it’s right up to the deadline, an electronic payment can be scheduled for the due date, so you won’t incur late penalties if you submit it on time​.

• Security:

The IRS’s electronic payment systems use encryption and identity verification to protect your data​. For example, when you use IRS Direct Pay or the Electronic Federal Tax Payment System, you go through identity checks (like using prior tax information or a secure PIN) so that only you can authorize the payment.

The IRS and U.S. Treasury have implemented multi-factor authentication (such as using your SSN/EIN, a PIN, and an internet password) to keep your transactions safe​. Plus, you don’t have to worry about a paper check getting lost or stolen in the mail.

• Convenience:

Electronic payments let you pay from anywhere, 24/7 – from your home computer or phone. You can schedule payments in advance to set up a payment today for the due date or any date up to a year ahead​. There’s no need to find a mailbox or write a check.

You can also get email notifications and reminders about your payment, giving you peace of mind that it’s set up​​.

• Instant Confirmation and Recordkeeping:

When you pay electronically, you receive an instant confirmation or receipt number for your records​. This is proof that you submitted payment. Many methods also allow you to look up your payment status online.

This immediate feedback is helpful—you know the IRS received your payment. If you have an IRS Online Account, you can log in to see your payment history and any pending payments at a glance, which makes recordkeeping easier​.

• Avoiding Penalties and Interest:

Perhaps the most significant benefit is avoiding late payment penalties if you pay on time electronically. If you realize you owe taxes and the deadline is near, an e-payment option can help you meet the deadline and minimize any interest or penalties for late payments. Even making a partial payment electronically by the due date helps reduce penalties​.

IRS Electronic Payment Methods for 2025

The IRS provides multiple electronic payment options to suit different preferences. In 2025, you can pay your federal taxes using any of the following methods:

• IRS Direct Pay – Pay directly from your bank account online for free​.
• Electronic Federal Tax Payment System (EFTPS) – A free online/payment system (requires enrollment) for individuals and businesses​.
• Debit or Credit Card Payments (and Digital Wallets) – Pay online or by phone with a card or certain digital payment apps (a processing fee applies)​.
• IRS2Go Mobile App – The IRS’s official mobile app allows you to make payments on a phone or tablet​.
• Electronic Funds Withdrawal (EFW) – If you’re e-filing your tax return, you can have the payment automatically withdrawn from your bank as part of filing (free service)​.
• Same-Day Wire Transfer – For urgent or high-dollar payments, you can transfer funds the same day through your bank (your bank may charge a fee)​.

Each method has benefits. Review them individually to understand how to use each and what to expect.

1. IRS Direct Pay (Paying from Your Bank Account Online)

IRS Direct Pay is a free online service allowing taxpayers to make individual or business tax payments directly from their checking or savings accounts without any service fees or the need for registration. Payments can be scheduled up to 365 days in advance, providing flexibility for future obligations. Each transaction generates an immediate confirmation number, with optional email confirmation, and scheduled payments can be reviewed or canceled up to two business days before the payment date.

For security, Direct Pay verifies your identity using information from past tax returns and encrypts each transaction to protect personal and banking details. Bank information isn’t stored for future use, enhancing security but requiring re-entry with each payment. However, Direct Pay supports only single, one-time payments. Taxpayers needing recurring automatic payments or multiple scheduled transactions should use the Electronic Federal Tax Payment System (EFTPS).

Here’s how to use Direct Pay:

1. Go to the IRS Direct Pay webpage.

Navigate to IRS.gov and click “Make a Payment,” then choose IRS Direct Pay​. (You can also go directly to the Direct Pay site.) Once there, select “Make a Payment.”

2. Select your tax payment details.

You’ll be prompted to choose the reason for payment, the type of tax form, and the tax year to apply the payment. For example, if you are paying tax due for your 2024 return, you might select “Balance Due – Form 1040 – Tax Year 2024.”

It’s essential to pick the correct reason and year so the IRS credits your payment correctly (e.g., estimated taxes vs. tax return balance). The online form will guide you through these choices​.

3. Verify your identity.

Next, Direct Pay will ask for certain verification information. For individuals, you’ll need to provide personal information from a past tax return (such as your filing status and address and one financial line item, like your last refund amount or adjusted gross income)​.

This is how the IRS confirms you are the one making the payment. To simplify this step, have a copy of last year’s return handy. For businesses, Direct Pay will ask for details like your business name and Employer ID Number (EIN)​.

4. Enter your payment amount and bank information.

Now, input the bank routing and account numbers for the account you want to debit. Double-check the numbers so the payment isn’t rejected due to a typo. Enter the amount you wish to pay and, if scheduling for the future, the date you want the payment withdrawn.

Remember, you can schedule it up to a year out, or as soon as today (if you submit during IRS hours).

5. Review and submit.

The system will show you a summary of the information you entered. Take a moment to review and ensure that everything is correct – your name, SSN, payment amount, bank info, tax year, etc. Once it all looks good, submit the payment. You should then see a confirmation page with a confirmation number.

Save or print this confirmation number for your records. If you provide an email, you will also get an email confirmation. The IRS will process the bank withdrawal on the specified date, and you’ll typically see it debited from your bank account within a day or two.

2. Electronic Federal Tax Payment System (EFTPS)

The EFTPS is a free, secure service from the U.S. Department of the Treasury, designed for making electronic federal tax payments directly from your bank account. Unlike Direct Pay, EFTPS requires a one-time enrollment, after which you can easily schedule payments up to 365 days in advance, view 15 months of payment history, and access immediate payment confirmations online or by phone. EFTPS is especially useful for businesses handling payroll and excise taxes and individuals making regular payments, such as quarterly estimated taxes.

Security is a priority for EFTPS, which employs multi-layer authentication using your taxpayer ID, a mailed PIN, and an internet password to protect your account from unauthorized access. The site and transactions are encrypted, and the mailing-based enrollment process prevents fraudulent account creation. Thus, EFTPS offers a secure, comprehensive solution for efficiently managing multiple or scheduled federal tax payments in one place.

Before you can make a payment with EFTPS, you must enroll. It’s a straightforward process, but don’t wait until the tax deadline to enroll because it takes a few days to set up. According to the IRS, new enrollments can take up to five business days to process​since part involves mailing you a PIN for security. Here’s how enrollment works:

• Go to the EFTPS.gov website (the official site) and click “Enroll.” Enter the requested information. This will include your taxpayer identification (SSN for individuals or EIN for businesses), your bank account and routing number (for the account you’ll use to pay), and other personal details. You’ll create credentials and wait for the system to mail you a PIN.
• Receive your PIN by mail. After enrollment, within about a week, the IRS/Treasury will send a letter to your mailing address with a unique PIN (Personal Identification Number).
• Activate and set a password. Once you have the PIN, return to EFTPS.gov and click “Login” (or “Need a Password”). Using your SSN/EIN, the PIN, and an account number, you will set up an internet password for your EFTPS account​. From then on, you’ll use your SSN/EIN, PIN, and password to log in securely.

(Tip: You can provide two bank accounts during enrollment, but one is sufficient. Also, you can enroll by phone if needed – but online is typically easiest.)

Here’s how to use EFTPS after logging in:

1. Log in to EFTPS.

Visit eftps.gov and click “Make a Payment.” Log in with your SSN or EIN, PIN, and password. (If it’s your first time logging in after getting your PIN, you’ll go through setting up the password as mentioned.)

2. Select the type of payment.

Once logged in, you will select the tax form or payment you are making. EFTPS covers many types:

• If you’re paying individual income taxes, you might select the 1040 series and then the subtype (e.g., “1040 Current Year Balance,” “1040 Estimated Tax,” etc.).
• If business, you might select payroll tax (e.g., 941/940), corporate tax, excise, etc. Choose the correct form, tax period, and payment type from the menu. The system will prompt for the needed info. (For example, pay 2024 Form 1040 balance due, or 2025 1st quarter estimated tax, or Form 941 for 1st quarter 2025, etc.)

3. Enter payment details.

Input the amount you are paying. The bank account you enrolled in will already be on file, so you typically just confirm which account to use (if you have multiple saved). Select the date for the payment to be made.

You can set it for today (if before the daily cutoff) or any future date up to a year away. Many people, for example, schedule all four quarterly estimates in one sitting using EFTPS.

4. Review and submit.

Double-check that all details are correct – especially the tax form and period (for instance, you don’t want to pay 2023 when you meant 2024 accidentally). Submit the payment. The system will give you a confirmation number or acknowledgment screen. Save or print that confirmation. You should also get an email confirmation if you opt-in for emails.

5. Recordkeeping and follow-up.

The payment will be drafted from your bank on the date you choose. You can log back into EFTPS at any time to see the status, and your history will show the payment as pending or completed. EFTPS allows you to cancel or modify a scheduled payment up to two business days before the date (similar to Direct Pay’s rule).

If you notice an error, you can fix it before the deadline. Additionally, you can call EFTPS customer service if you have issues; they are available 24/7 to assist.

Using EFTPS by phone: Once enrolled, you can also make payments through the EFTPS Voice Response System by calling a unique phone number. The phone payment number is 1-800-555-3453 for EFTPS​. You’ll use your EIN/SSN and PIN over the phone to authenticate, then follow the prompts to schedule a payment. This can be handy if you don’t have internet access, but most users today use the website or even the EFTPS mobile app/website on a smartphone browser.

Note: EFTPS cannot be used for certain payments, such as in some “same-day” federal tax deposit situations unless you initiate a same-day wire. For typical taxes, though, it’s okay. Lastly, be mindful of the cutoff: EFTPS payments generally need to be scheduled by 8 p.m. Eastern Time the day before for next-day credit. If it’s the due date and you’ve missed that window, you might need a same-day wire or card payment instead.

3. Debit or Credit Card Payments (and Digital Wallets)

The IRS allows you to pay your taxes online or by phone using credit cards, debit cards, or digital wallets like PayPal, Venmo, or Click to Pay through IRS-approved third-party payment processors such as Pay1040.com and ACI Payments, Inc. These processors handle transactions securely and charge a processing fee for their service, offering convenience, privacy, and the potential to utilize credit card rewards or billing cycles.

Payments made via these authorized processors are secure and encrypted, and your card information is never shared directly with the IRS, providing an extra layer of privacy. Always initiate payments through official IRS-linked processors listed on IRS.gov, and be cautious of unsolicited calls demanding immediate card payments, as these are likely scams.

Here’s how to pay by credit/debit card or digital wallet:

1. Visit IRS.gov for authorized payment processors.

Go to the IRS “Pay by Card” webpage, which lists the authorized processors and their links​. You’ll see options to pay online or phone numbers to pay by phone. Choose an online processor (for example, click the link for Pay1040.com or ACI Payments).

2. Initiate your payment on the processor’s site.

When you visit the processor’s website to make a tax payment, it will guide you through several steps to ensure the payment is correctly reported to the IRS. Initially, you’ll be prompted to choose the type of tax payment you’re making, such as a current balance on Form 1040, an estimated tax payment, or an extension payment, akin to the options available through Direct Pay or EFTPS.

Following this, you’ll need to provide your details, including your name, address, and Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN). This information helps link the payment to the correct individual. Finally, you will enter the specific money you wish to pay.

3. Choose a payment method (card or digital wallet).

If paying by card, enter your credit/debit card details (card number, expiration, CVV, billing info). If paying by digital wallet, you might see an option to “Pay with PayPal/Venmo” or something similar. In that case, you’d log into your PayPal/Venmo account to authorize the payment.

(Some processors might have a “Digital Wallet” button that includes multiple services like PayPal or an option like “Click to Pay,” which can use cards saved in digital wallets.)​.

4. Review the processing fee.

Before finalizing, the site will calculate and show you the service fee for using the card or wallet. For example, it might say “Fee: $19.80 will be charged separately” for a $1,000 payment (just as an example). If you use a debit card, it might show a flat few dollars. Ensure you’re okay with this fee, which will be added to your tax payment. Some people choose a particular processor because it has a slightly lower fee rate for their card type.

5. Submit payment.

Authorize the payment and submit. Do not click submit twice; processing might take a few moments. You should get a confirmation number or receipt from the processor. Write down or save this confirmation. You might also get an email confirmation.

The processor will charge two transactions to your card: one for the tax amount going to the IRS and one for the service fee (these might appear as separate line items on your card statement). For example, your statement could show “USTAXPYMT—$1,000” and “Processor Fee—$19.80” as two charges.

Note: If you prefer to do this by phone, the IRS provides phone numbers for each processor on its site​. You’d call, follow the automated prompts, speak to an agent, and give the same information (SSN, tax type, card number, etc.). Phone payments result in the exact fees and confirmation numbers.

4. IRS2Go Mobile App Payments

IRS2Go is the official IRS mobile app, free for Android and iOS devices. It provides convenient access to IRS payment methods like Direct Pay or card payments from your smartphone or tablet. The app securely connects you to existing IRS systems without storing your sensitive information.

In addition to making payments, IRS2Go allows users to check refund statuses quickly, locate free tax preparation services, and access IRS contact information, news, and helpful tax tips, making it an ideal tool for managing taxes on the go.

Here’s how to use IRS2Go to make a payment:

1. Download the IRS2Go app.

Go to the Google Play Store or Apple App Store and search “IRS2Go.” Ensure it’s by the Internal Revenue Service (there may be look-alike apps, but the official one is from the IRS). Download and install it – it’s small and free.

Open the app and choose “Make a Payment.” The interface is simple. You’ll see a menu of options (like “Refund Status,” “Make a Payment,” etc.). Tap on Make a Payment. The app will present you with payment options.

2. Select your preferred payment option.

The IRS2Go app typically offers several payment options, aligning closely with previously mentioned methods. The most common include Direct Pay, which opens a mobile-friendly version of the standard IRS Direct Pay system. It guides you through selecting a payment reason, verifying your identity, and entering bank details—all conveniently on your smartphone.

Another option is to pay via debit or credit card. The app directs you to IRS-authorized payment processors’ mobile sites, allowing payments by card or digital wallet. While IRS2Go occasionally references additional payment methods, such as EFTPS, the primary options presented are usually Direct Pay and debit or credit card payments.

3. Complete the payment steps.

If you choose Direct Pay via the app, you’ll fill in the forms just like on the website (the app essentially opens a secure web view to the IRS Direct Pay form). Input your details, verify your identity, and submit just as you would on a computer. If you choose a Credit/Debit Card, the app will direct you to the secure third-party mobile site to enter your card info and complete that payment. Follow the prompts accordingly.

4. Receive confirmation.

After completing the process, you should get a confirmation on your phone screen (and any email confirmation if applicable) just as you would on the desktop. Save any reference number or take a screenshot if needed.

5. Electronic Funds Withdrawal (EFW) – Pay While E-Filing

Electronic Funds Withdrawal (EFW) allows you to pay taxes directly from your bank account as part of electronically filing your tax return, using tax software, or through a tax professional. This free method conveniently schedules your payment alongside e-filing, allowing you to choose the withdrawal date (on or before the due date). It is ideal for tax balances due, estimated tax payments (Form 1040-ES), or extension payments (Form 4868).

EFW payments are highly secure. They are transmitted via the encrypted IRS e-file system, and your bank information is used exclusively for the authorized one-time debit. The IRS cannot initiate additional withdrawals, ensuring security comparable to writing a traditional paper check.

How to use Electronic Funds Withdrawal:

1. Choose EFW during tax prep.

When you’re in your tax software (or working with your tax preparer) and have a balance due, the program will ask how you want to pay. Select the option to pay via electronic funds withdrawal or direct debit from a bank account. (Different software may call it slightly different names, but it essentially provides your bank info for automatic withdrawal.)

2. Enter your bank information and payment details.

You’ll need your routing and account numbers for your checking or savings account. Also, input the amount you want withdrawn. Usually, if you owe $X as calculated on the return, you’d put that amount (you could also choose a smaller amount if you planned to pay part now and part later, but that would still leave you with a balance). You can often select the date of withdrawal.

For example, if you finish your taxes in February but don’t want the money to come out until the April due date, you can set April 15, 2025, as the debit date. (If you don’t explicitly choose a date, some software will default to the current or due date – check this carefully.)

3. Provide authorization.

The software will have you electronically sign your return (with a PIN or your prior year AGI, etc.), which also serves as authorization for the payment. There may be a specific authorization page or dialog where you agree to let the U.S. Treasury initiate a one-time ACH debit from your account for the amount and date specified. This is legally equivalent to signing a check.

4. Submit your e-file.

When you transmit your e-filed return, the payment information is securely sent to the IRS. If your e-file is accepted, the IRS will schedule the withdrawal as authorized.

The payment request will not be processed if your e-file is rejected (say, due to a typo in a Social Security number). In that case, you would need to fix your return and retransmit it (which includes the payment information) or use another payment method if you mail the return.

5. Confirmation and bank debit.

Your tax software may confirm that the IRS accepted your return. The actual bank withdrawal will occur on the date you specified. Check your bank account around that date to ensure the debit happened. The descriptor usually indicates it’s a US Treasury or IRS payment.

Since you won’t get a separate confirmation number solely for the payment (the whole e-file gets an acknowledgment), your bank record serves as confirmation, as does the IRS acceptance. Later, you can check your IRS Online Account to see if the payment was applied.

6. Same-Day Wire Transfer

A same-day wire transfer allows taxpayers to electronically send funds from their bank directly to the U.S. Treasury’s account on the same business day, ideal for urgent payments or large transactions that exceed ACH limits. While convenient for last-minute or significant payments, banks typically charge a fee (around $20–$30) per transfer. It’s essential to initiate wires early due to bank cutoff times and ensure all payment details are precise to prevent processing delays or misapplication.

Wire transfers are highly secure because they’re direct bank-to-bank transactions. However, taxpayers must confirm they’re wiring funds to official IRS accounts, clearly identified as the “U.S. Treasury,” to avoid scams.

Here’s how to make a same-day wire payment:

1. Obtain the IRS’s wire instructions.

The IRS has a form called the Same-Day Taxpayer Worksheet (Form <small>FTD</small>), which provides all the fields your bank will need to send the wire. You can find this on the IRS website or through a quick web search for “IRS same-day payment form.” It includes the Treasury’s receiving bank info, the ABA routing number for the Federal Reserve Bank, and special instructions like your tax type code.

You will need details such as the IRS’s account number (Treasury account), a Treasury routing transit number for wires, and information to identify you (like your SSN/EIN and the tax period). For example, you’ll indicate what form or purpose (say, “1040 current year payment”) via a code on the form.

2. Fill out the Same-Day Taxpayer Worksheet.

This form isn’t sent directly to the IRS; you provide it to your bank so they can accurately complete your wire transfer. You’ll need to fill in key details, including the specific IRS tax code (such as “1040” for individual income tax), the exact payment amount, the relevant tax period (year or quarter), and your personal or business identification details like your name and SSN or EIN.

A bank representative can usually assist if you’re unsure how to complete the form. Completing this form helps ensure your wire payment is correctly credited to your IRS account.

3. Go to your bank (or use online banking, if available).

Many banks require you to visit a branch in person to initiate a wire, especially if you don’t have pre-established wire capability online. Some banks allow setting up a wire online through their website if you have the IRS details, but this can vary.

The safest bet, especially if time is critical, is to go to a local branch as early in the day as possible (morning is best; don’t wait until near the wire cutoff, which can be mid-afternoon). Bring the completed worksheet and a valid ID.

4. Initiate the wire transfer to the IRS.

Tell the banker you must send a Fedwire (Federal Reserve Wire Network) to the U.S. Treasury for a tax payment. Provide the completed worksheet or the IRS bank info and your payment details.

They will input this into their system. Double-check that the routing and account numbers match those on the IRS instructions. Also, confirm the exact amount you want to send. The banker might have you review a printed wire request before they send it.

5. Pay the bank fee and send it.

You must pay the wire fee to your bank (usually just debited from your account along with the wire amount or separately). The banker will send the wire. Wire transfers are typically very fast – often completed within an hour. Because it’s a same-day wire, the IRS will receive the payment on that same business day, usually within hours.

6. Confirm the IRS received it.

This part isn’t as instant as the other methods. You won’t get an immediate IRS confirmation when sending a wire. However, you can usually request a Federal Reference Number for the wire from your bank as proof of sending. You can call the IRS or check your IRS Online Account a few days later to ensure the payment was applied. If done correctly, it should be posted to your account with the effective date of the wire.

Key Security Features and Tips for Electronic Payments

These electronic payment methods have strong security measures to protect your financial information. Here are some key security features and tips every taxpayer should be aware of:

1. Encryption:

The IRS uses the latest encryption technology to keep your online payments safe​. Whether you’re entering info on IRS.gov, the IRS2Go app, or an authorized payment site, the data is scrambled in transit so bad actors can’t intercept it. Ensure you see “https://” and a padlock icon in your browser when entering sensitive info.

2. Identity Verification:

To prevent fraud, IRS payment systems verify your identity through various means. Direct Pay asks for info from a prior tax return​, and EFTPS requires a PIN and password​. These measures ensure that someone can’t easily pretend to be you to make unauthorized payments or access your records. It might feel like extra steps (remembering an old AGI, waiting for a PIN in the mail), but it’s done for your protection.

3. Multi-Factor Authentication:

Systems like the IRS Online Account and EFTPS use multi-factor authentication—for example, sending a security code to your phone or email when you log in or using your PIN+password combo​. If you use the IRS Online Account to make a payment, you’ll go through that secure login, which reduces the risk of someone else logging in as you.

4. Official Websites and Apps:

Only use official IRS websites or authorized partners when making payments. The IRS does not accept payments via email or social media and won’t ask for payment via gift cards or money transfers. If you’re using a mobile app, stick to IRS2Go, the IRS’s official app. If paying by card, use the links from IRS.gov to the authorized processors​.

This way, you know the site is legitimate and your information is handled correctly. Beware of lookalike URLs—for instance, the official IRS site ends in .gov (not .com or .org).

5. Secure Networks:

This is a personal practice: using a secure, private internet connection when making an electronic tax payment. Avoid doing it on public Wi-Fi at a coffee shop, for example. If you must use a public network, ensure the site is HTTPS (which it will be) and consider using a VPN for extra security.

6. Confirmation and Records:

After making an electronic payment, permanently save your confirmation number or receipt. This is part of security, too – it’s your proof in case something is questioned. The IRS will also have a record of that confirmation. You can screenshot the confirmation page (make sure not to share that image as it might have personal info accidentally).

If you opted for an email copy, keep that email safe. Having these records means that if the IRS ever says, “We didn’t receive payment,” you have evidence to help sort it out​. That being said, such issues are rare when using official methods.

7. Email Notifications:

Direct Pay and EFTPS allow you to receive email notifications about your payments​. Consider using this feature—for example, EFTPS can email whenever a payment is scheduled or made. These notifications act as an extra check: if you get an email about a payment you didn’t plan, you can alert the IRS immediately (though this scenario is unlikely if all security protocols are followed).

8. Scam Awareness:

Unfortunately, tax payments are an area targeted by scammers. Remember:

• The IRS will not call or email you out of the blue demanding an immediate electronic payment. They always send tax letters due first. A common scam is someone calling pretending to be the IRS and insisting you pay via wire or card right now – the IRS does not do that.
• If someone is telling you to pay your taxes with unusual methods (gift cards, wire to an individual, etc.), it’s a scam. The IRS has standard methods (the ones we’ve covered). They don’t take iTunes gift cards as payment!
• Phishing emails: You might get emails that look like IRS payment confirmations or errors. Be cautious about any email. It’s best not to click links in emails claiming to be IRS; instead, directly navigate to IRS.gov in your browser.
• The IRS maintains a list of known and fraudulent schemes (check the “Tax Scams/Consumer Alerts” page on IRS.gov). Stay informed to avoid falling victim.
• Bank Alerts – a tip some people use – set up alerts on your bank account or credit card. For example, get a text whenever a withdrawal over a certain amount happens. If you schedule an IRS payment, you’ll be notified when it hits your account. It’s a good way to track that the payment went through successfully (or to catch if something goes awry, like a double charge, which is rare but hypothetically possible if you accidentally submitted twice).

Common Mistakes to Avoid When Making Electronic Tax Payments

Electronic payments simplify the process, but there are still a few pitfalls to watch out for. Avoiding these common mistakes will ensure your payment process goes smoothly and your tax gets paid properly:

• Waiting until the last minute to set up:

If you plan to use a method like EFTPS, don’t procrastinate on enrollment. It takes a few days to get set up​. Similarly, if you will use a new credit card or your IRS online account for the first time, give yourself some buffer time. Last-minute rush can lead to errors or panic if something isn’t working.

• Typos and data entry errors:

One of the most common issues is a simple typo in entering numbers (SSN, bank account, routing number, amount). Double- and triple-check the numbers you input. An incorrect bank account or routing number can result in a failed payment or even the payment going to the wrong place.

Also ensure names and addresses you enter match IRS records when required (for identity verification in Direct Pay, for example, use your exact name spelling and address from your last tax return).

• Choosing the wrong payment type/year:

As mentioned earlier, electronic systems often ask what you’re paying for. It’s surprisingly common for taxpayers to apply a payment to the wrong year or form. For instance, someone intends to pay their 2024 income taxes but accidentally selects “2023.” The IRS might then see 2024 as unpaid and 2023 as overpaid.

While these can be corrected by contacting the IRS, you can avoid this headache by carefully selecting the correct options. Read the on-screen options slowly to be sure.

• Not completing the process:

Be sure to finish the transaction until you see confirmation. If you exit a screen too early or assume, “I’ll come back to it,” your payment might not go through. Especially with card payments, ensure you get to the confirmation page after entering your card info.

With Direct Pay, don’t close the window until you have the confirmation number. If in doubt, redo the payment rather than risk it not being done (and if you accidentally pay twice, the IRS can refund an overpayment, but not paying at all would be worse).

• Ignoring confirmation or error messages:

If the system gives you a confirmation number, save it. If it gives you an error (say, card declined or bank account not verified), don’t ignore that—take action. A card decline means you should call your card company or use a different method. A bank reject might mean the name on the account didn’t match, etc. Work through any errors immediately so you can be sure the payment is ultimately successful.

• Insufficient funds/credit:

Before you initiate an ACH payment (Direct Pay, EFTPS, EFW), ensure your bank account has or will have enough funds on the scheduled date. Bounced tax payments can incur penalties from the IRS (typically a fee for a returned payment) and your bank. If you’re using a credit card, ensure the charge won’t exceed your credit limit.

These sound obvious, but around deadlines, people sometimes schedule payments from an account that doesn’t have the money yet (perhaps thinking a deposit will clear in time) – if it doesn’t, the payment fails.

• Assuming an extension to file means an extension to pay:

This is a broader tax mistake. Even if you file Form 4868 for an extension to file your return, tax payments are still due by the April deadline. Electronic payments can (and should) be used by the original deadline. Don’t mistakenly delay payment to October thinking the extension covered it – it doesn’t.

Pay at least something by April to avoid heavy penalties. You can use any e-pay method to pay when filing an extension (for example, you can go to Direct Pay and choose “Extension payment”).

• Using the wrong method for the situation:

For example, a business trying to pay payroll taxes by credit card (not allowed)​, or an individual trying to pay a tax bill over $100,000 in one go without realizing there might be special requirements for large card payments​.

Make sure the method you pick fits your needs. Generally, if you owe a considerable amount, EFTPS or a wire might be more appropriate than 20 separate card payments.

• Not considering the cost (fees or interest):

If you use a method with fees (card or installment plan), be aware of those costs. Don’t be caught off guard. We discussed fees earlier: card payments incur a processing fee; installment agreements have setup fees and interest on the balance; and wire transfers have bank fees.

Compare those costs with your budget. Sometimes, people pay more than they need because they didn’t realize a free option (like Direct Pay) was available. For instance, someone might pay a $50 card fee when they could have paid $0 by Direct Pay on the same day.

• Neglecting installment payments:

If you set up a payment plan (installment agreement), you usually need to make a payment each month. A mistake here is to “set it and forget it” without setting up an automatic payment. If you have a direct debit installment agreement, the IRS will automatically pull the payment each month – that’s ideal. But if you just set up a regular installment (where you promise to pay monthly but not auto-drafted), you need to go each month and pay (via Direct Pay, EFTPS, etc., or mail a check).

Many taxpayers default on installment plans simply because they forget to make a payment. To avoid this, either set up a direct debit or mark your calendar each month and even schedule the payments ahead of time (EFTPS is excellent for scheduling recurring payments – you could schedule 12 monthly payments in advance). Missing an installment payment can cause the agreement to default, and then you’re back in collection status with the IRS, possibly with penalties reinstated.

• Not verifying payment posted:

After you’ve made your electronic payment, especially a large one, it’s good practice to verify that it is posted to your IRS account. You can do this by checking your IRS Online Account, calling the IRS, or simply seeing if your balance due went down. The vast majority of the time, if you get a confirmation, everything is fine.

But occasionally, if something did go wrong (e.g., a technical glitch), you’d want to catch it sooner. So if a week or two passes and you don’t see the money out of your bank or your IRS balance hasn’t updated, investigate. Such instances are rare with electronic payments, but it’s better to be proactive.

Costs and Fees Associated with Different Payment Methods

One great thing about most IRS electronic payment options is that they are free or low-cost. However, some methods involve fees (either from the IRS or third parties). Here’s a quick rundown of any costs to be aware of for each method:

• Direct Pay:

There are no fees. This service is completely free. If you pay $2,000 via Direct Pay from your bank, exactly $2,000 comes out of your account—nothing more​.

• EFTPS:

No fees. EFTPS is free to enroll and use, whether you pay online or by their phone system​. The only potential “cost” is your time enrolling, but monetarily it’s free. (Your bank also shouldn’t charge for an EFTPS payment since it’s an ACH debit initiated by the IRS, not a wire or anything.)

• Electronic Funds Withdrawal (with e-filing):

No fees. It’s just like writing a check, but electronically, so there’s no charge for the service​. Your tax software might have a fee to e-file (depending on the product), but the IRS doesn’t charge for pulling the payment.

• IRS2Go App:

There are no fees to use the app or make a payment through it. Of course, if you choose a payment method that has a fee (like a card), that fee still applies. The app itself and using Direct Pay through it are free.

• Debit/Credit Card or Digital Wallet:

The exact fee for making a tax payment varies depending on the processor and the payment method you choose. For credit card payments, the cost is typically a percentage of the total payment amount, averaging around 1.85%, but can vary slightly; for instance, one processor might charge 1.75% while another charges 1.98%, with a minimum fee of about $2.50. If you’re paying a $1,000 tax bill via credit card, the cost would be approximately $18.50.

On the other hand, debit card transactions usually incur a flat fee, ranging from $2 to $3 per payment. For example, using a debit card might cost you a fee of $2.20, whether you’re paying $100 or $5,000 in taxes. Payments made through digital wallets, such as PayPal or Venmo, are treated similarly to credit card payments, where the fee is also a percentage of the transaction amount, commonly around 2%.

Before you finalize your tax payment, these fees will be displayed, allowing you to review them. To ensure you get the best rate, compare the fee rates of different processors listed on the IRS website’s payment processor page. It’s important to note that these fees do not go to the IRS but are collected by the payment service. Additionally, these card fees are not deductible for individual taxpayers who itemize deductions on their tax returns. However, if the costs are associated with business taxes, they may be considered deductible business expenses.

• Same-Day Wire Transfer:

Bank fees are likely. The IRS doesn’t charge you for accepting a wire, but most banks will charge you for sending a wire (domestic outgoing wire fee). Typically, it’s in the $25-$30 range for many banks, though some may have higher or lower costs, and some premium accounts might offer several free wires. If you are wiring a considerable amount, that fee might not bother you, but if you’re wiring a smaller amount, consider if it’s worth it versus Direct Pay.

Also note that if you initiate a wire by talking to a bank teller, sometimes the fee might be higher than if you could do it yourself online (some banks charge more for assisted wires). Check with your bank on their fee schedule.

• Payment Plan (Installment Agreement) Fees:

If you cannot pay your taxes in full, setting up an installment plan with the IRS is an option, though it often involves a setup fee and payment method fees. Short-term payment plans, which allow up to 180 days to pay if your balance is under $100,000 (including tax, penalties, and interest), do not incur a setup fee when established online. For long-term payment arrangements (over 180 days), the setup fee varies depending on the application method and whether payments are made automatically.

Applying online with direct debit generally has the lowest fee (recently around $22–$31), while applying online without direct debit involves higher fees (around $69–$130). Applications made by phone, mail, or in person typically incur the highest fees—about $107 with direct debit and $178 without.

For 2025, the IRS has also expanded access to a simplified payment plan to accommodate balances under $50,000, making it easier for taxpayers to manage their obligations. Low-income taxpayers may qualify for reduced or waived setup fees, especially if payments are made via direct debit.

Remember that even with an installment plan, interest and potentially reduced penalties accrue on the outstanding balance until fully paid. The interest rate, updated quarterly, generally reflects the federal short-term rate plus 3%, making it another factor to consider when choosing an installment agreement instead of paying your taxes in full.

Conclusion

The IRS’s electronic payment options for 2025 provide a versatile and secure suite of tools for taxpayers to meet their obligations efficiently. From Direct Pay to the EFTPS, debit or credit card payments, and even mobile solutions via the IRS2Go app, the IRS ensures taxpayers can choose a method that suits their individual or business needs. The benefits of electronic payments are clear: they are fast, secure, and convenient, offering instant confirmations and reducing the risks associated with late fees. Furthermore, the IRS has taken significant steps to protect taxpayer data through encryption and multi-factor authentication, making these electronic payment methods practical and highly secure.

But, if you run into any trouble, the IRS has hotlines. For payment issues, you can call the IRS payment line (often 1-888-353-4537 for e-file payment issues or the general IRS helpline at 1-800-829-1040). The IRS.gov “Contact Us” section will have the specific numbers.