Modernizing Tax Payments: The Evolution of Taxation in the Digital Age
Explore Convenient Ways to Pay Your Federal Taxes Online: Top Options for This Year (PHOTO: Rappler)
Modern Technology Streamlines Tax Payments
Paying taxes has changed a lot over the years and now its easier than ever. In the past before computers paying taxes was hard and stressful. There was a lot of paperwork and people were worried about making mistakes. But now with technology the IRS has made it much simpler.
Now Americans can pay their taxes in many ways. They can use direct debit credit cards or even phone apps. This makes it easier for everyone. It also helps the IRS keep track of who pays taxes. This makes things better for everyone as it means fewer mistakes and less chance of people not paying their taxes. This makes people feel better about paying taxes as they know they are doing the right thing and not missing out on any benefits.
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The Electronic Federal Tax Payment System
- IRS DIRECT PAY: A simple and cheap way to pay taxes. You can use it on the IRS website. You can pay from your checking or savings bank account. You can use it from Monday to Saturday from midnight to 11:45 p.m. and on Sundays from 7 a.m. to 11:45 p.m. EST.
- Electronic Federal Tax Payment System: You can also pay your taxes using the government’s EFTPS. You’ll need your Social Security number (SSN) or Individual Taxpayer Identification Number (ITIN), a personal identification number (PIN), an internet password, and a secure browser. It can take up to five days to sign up for this service, and you can do it online or over the phone. With EFTPS, you can schedule payments up to 365 days in advance, and you’ll get a confirmation right away after you pay.
- Credit and debit cards: You can pay your taxes online or over the phone using your debit or credit card. The IRS doesn’t charge a fee, but the service providers do. There are three providers: PayUSAtax, Pay1040, and ACI Payments, Inc. The fee for debit cards is usually between $2 and $4. For credit cards, the fee is a percentage of the payment amount. For example, a $1,000 payment might have a $19.90 fee, while a $10,000 payment might have a $199 fee. The IRS accepts Visa, Discover, American Express, Mastercard, STAR, Pulse, NYCE, Accel, PayPal, and PayNearMe.
- Cash: You can pay your taxes with cash, but you can’t mail cash to the IRS. Instead, you need to visit a cash processing company or retail store. Many popular convenience stores and pharmacies offer this service. You can also make a payment at an IRS Taxpayer Assistance Center (TAC).
- Electronic Funds Withdrawal: Electronic Funds Withdrawal (EFW) is another way to pay taxes, but in some cases, you may have to pay a small fee to your bank. You can only use this payment method if you e-file your federal taxes using tax preparation software, a tax professional, or IRS Free File. With EFW, you can submit one or more payments by direct debit from your bank account, and you can also schedule payments up to 365 days in advance.
- Check or money order: The IRS also accepts checks or money orders for your tax bill. You should make these out to the United States Treasury. You’ll also need to fill out and send in Form 1040-V along with your payment. Your form and check or money order should be mailed to the right address, which you can find on the back of your 1040-V. Make sure your check has the following information:
- Your full name and address
- Your phone number
- Your Social Security number or Individual Taxpayer Identification Number (ITIN)
- The tax year and tax form you’re paying for
- The amount you’re paying
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