With the upheaval caused by the tax reform bill and its subsequent withholding changes, some taxpayers are being caught off guard by an unexpected balance due this year. To avoid processing fees, pay your balance due directly to the IRS or state using one of these methods. If you can’t pay your taxes in full by April 15th, there are options.
Federal Taxes
Pay with IRS Direct Pay. You can schedule your payment up to 30 days in advance to pay directly out of a checking or savings account. You can submit your return now and schedule your payment for a later date. Any payments made before April 18th will be considered on time. No registration is required and there are no processing fees.
Pay with the IRS2Go app. The app will allow you to pay what you owe out of your bank account through their IRS Direct Pay service without fees, or with your debit or credit card through an approved payment processor (who will tack on their own processing fee).
Pay when you e-file. You can schedule a date for your payment to deduct from your bank account at the time your return is e-filed. Ask your tax professional.
Pay by mail. You can submit your payment to the IRS through the mail in the form of a check or money order. Payments must be postmarked by April 17th.
Can’t pay the entire balance? Individual taxpayers who owe less than $50K in tax, interest, and penalties and business that owe $25K or less in payroll tax and have filed all required tax returns usually qualify for an online payment agreement. The entire process can be completed online in just a few minutes. Some setup fees may apply depending on plan length, and penalties and interest accrue until the balance is paid in full. Processing fees may apply to payments made with a debit or credit card. Do not wait until the last minute; the enhanced identity verification process may require you to wait for an activation code by mail.
You can also apply for an installment plan by phone, mail, or by making an appointment at your closest IRS Taxpayer Assistance Center using Form 9465 Installment Agreement Request. See instructions for Form 9465 for your state’s assigned mailing address.
Connecticut Taxes
Pay the CT Department of Revenue Services directly. Using the Taxpayer Service Center, you can schedule your payment for any day up until the due date to electronically debit out of a bank account with no fees.
Pay by mail. You can mail a check or money order directly to the CT DRS, postmarked by April 17th.
Can’t pay the entire balance? Individuals who have filed all required tax returns, are not under bankruptcy or investigation by the CT DRS, and who have tax liabilities of $10K or less can apply online for a short-term payment plan of up to 12 months. You can submit your request through the Taxpayer Service Center. Penalties and interest continue to accrue until the balance is paid in full. If you do not meet these eligibility requirements, contact the DRS at 860-297-4936 to speak with an agent. Businesses needing payment plans must contact the DRS Compliance Division.
