How to Pay IRS Online: 6 Electronic Payment Methods (2026)

TL;DR

Executive Order 14247, signed March 2025, requires the IRS to transition all payments and refunds to electronic methods. Paper refund checks are being phased out starting September 30, 2025, with electronic payment requirements for taxpayers expected by 2027.

You have six ways to pay the IRS electronically:

IRS Direct Pay – Free, no account required
IRS Online Account – Free, requires ID.me verification
EFTPS – Free, best for businesses and estimated taxes
Credit/Debit Card – 1.85%–1.98% fee
Digital Wallets – PayPal, Click to Pay (fees apply)
Same-Day Wire – Bank fees apply, for urgent payments

This guide walks you through each method step-by-step, including how to create your IRS Online Account, so you can pay your taxes confidently and avoid delays.

The IRS is transitioning to electronic-only payments under Executive Order 14247. After September 30, 2025, paper refund checks will no longer be issued for most taxpayers. Electronic payment requirements are expected by 2027. Taxpayers currently have six electronic payment options: IRS Direct Pay, IRS Online Account, EFTPS, credit/debit cards, digital wallets like PayPal, and same-day wire transfers. This guide covers each method with step-by-step instructions.

You can also download the checklist below:

irs-electronic-payments-checklist Download

Why the IRS Is Eliminating Paper Checks (and What It Means for You)

On March 25, 2025, President Trump signed Executive Order 14247, titled “Modernizing Payments To and From America’s Bank Account.” This order requires all federal agencies—not just the IRS—to transition away from paper checks for both incoming and outgoing payments.

The timeline affects you directly:

September 30, 2025: The IRS stops issuing paper refund checks for most individual taxpayers. If you file a 2024 return on extension after this date without providing direct deposit information, expect delays.

2026 Filing Season: When you file your 2025 tax return, you must provide direct deposit information or qualify for an exception. If you don’t provide banking details and haven’t been granted an exception, the IRS will hold your refund for six weeks before considering other options.

2027 or Later: The IRS expects to require all payments to be made electronically. The exact date hasn’t been announced, but the transition is happening. Checks mailed to the IRS may eventually be returned.

Why is the government making this change? Paper checks are 16 times more likely to be lost, stolen, returned as undeliverable, or altered compared to electronic payments. The U.S. Postal Inspector Service recovers more than $1 billion in counterfeit and stolen checks annually. Electronic payments reduce fraud, speed up processing, and cost less to administer.

Some taxpayers will qualify for exceptions to these requirements. The Treasury Secretary can grant exceptions for individuals without access to banking services, emergency situations where electronic payment would cause hardship, and matters involving national security or law enforcement. The IRS is expected to publish guidance on how to apply for exceptions before the 2026 filing season.

Bottom Line: Set up your electronic payment method now. If you wait until you owe taxes, you may face delays or scramble to figure out the system under pressure.

How to Choose the Right IRS Payment Method

Not all payment methods work for every situation. Here’s how to decide which one fits your needs.

Payment Method Comparison

Payment Method	Cost	Best For	Max Payment	Setup Time	Scheduling
IRS Direct Pay	Free	One-time individual payments	$9.99M	None (guest)	Up to 365 days
IRS Online Account	Free	Viewing balance + payments	$9.99M	15–20 min	Up to 365 days
EFTPS	Free	Businesses, estimated taxes	$1M same-day	5–7 business days	Up to 365 days
Credit/Debit Card	1.85%–1.98%	Quick payments, rewards	Varies	None	Immediate
PayPal/Digital Wallet	~1.96%	Convenience	Varies	PayPal account	Immediate
Same-Day Wire	$25–$50 bank fee	Urgent, large payments	Unlimited	Bank relationship	Same day

Quick Decision Guide

Choose IRS Direct Pay if:

You’re an individual taxpayer
You want to pay once without creating an account
You need to schedule a payment up to a year in advance

Choose IRS Online Account if:

You want to view your balance, payment history, and tax records
You make payments regularly
You want to manage payment plans online

Choose EFTPS if:

You’re a business owner
You make quarterly estimated tax payments
You need to make payroll tax deposits (required for employers)

Choose Credit/Debit Card if:

You want credit card rewards points
You need to pay immediately and don’t have bank info handy
The convenience fee is worth it to you

Choose Same-Day Wire if:

You’re paying more than $1 million
You need the payment credited today
You missed the EFTPS 8 p.m. cutoff the day before

Our Recommendation: Most individual taxpayers should use IRS Direct Pay for one-time payments or set up an IRS Online Account for ongoing access. Business owners should enroll in EFTPS for estimated taxes and payroll deposits.

How to Create an IRS Online Account (Step-by-Step)

An IRS Online Account gives you access to your tax balance, payment history, tax records, and the ability to make payments—all in one secure place. Setting one up takes about 15–20 minutes.

What You’ll Need Before You Start

Gather these items before beginning:

Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN)
Email address you can access immediately
Photo ID (driver’s license, state ID, or passport)
Smartphone or computer with webcam
Your most recent tax return (for verification questions)
Mobile phone to receive security codes

Step 1: Go to the IRS Online Account Page

Navigate to irs.gov/account in your web browser. Click “Sign in or create an online account.” Since you’re a new user, select “ID.me Create an account.”

The IRS uses ID.me, a third-party identity verification service, to confirm you are who you say you are. If you’ve already created an ID.me account for another government service (like the VA or state unemployment), you can use that same login.

Step 2: Create Your ID.me Account

Enter your email address and create a strong password. Your password must be at least 8 characters and include a number, uppercase letter, and symbol.

Check your email inbox for a confirmation message from ID.me. Click the confirmation link or enter the 6-digit code provided.

Next, set up multi-factor authentication (MFA). You can choose to receive security codes by text message, phone call, or authenticator app. Most people find text messages the easiest option. Enter the code sent to your phone to verify it works.

Step 3: Verify Your Identity

You have two options for identity verification: self-service or video call with an agent.

Self-service verification (recommended): This takes about 5–10 minutes. You’ll upload photos of the front and back of your driver’s license or passport, then take a video selfie so the system can match your face to your ID. Make sure you’re in good lighting and hold your ID steady when photographing it.

Video call verification: If self-service doesn’t work, you can speak with an ID.me agent via video chat. Expect a wait time of 30 minutes or more. You’ll need two forms of ID for this option. The agent will verify your documents while you’re on the call.

After your identity is verified, ID.me will ask for your Social Security Number. Enter it carefully and review all your information for accuracy. Then authorize ID.me to share your verified identity with the IRS.

Step 5: Access Your IRS Account

You’ll be redirected to your IRS Online Account dashboard. From here you can:

View your current balance and balance by tax year
See your payment history and scheduled payments
Access tax transcripts and records
Make payments directly from your bank account
Set up or manage payment plans
Authorize your CPA or tax professional to access your account

Troubleshooting Common Issues

Problem	Solution
ID verification fails	Try better lighting for photos; use the video call option instead
Can’t verify identity online	Visit an IRS Taxpayer Assistance Center in person
Forgot password	Use ID.me password reset; have your recovery code ready
Name doesn’t match	Enter your name exactly as it appears on your tax returns
Already have an account	Sign in with your existing ID.me credentials

Pro Tip: Budget 15–20 minutes for account setup. Have your driver’s license and phone ready before you start. If self-service verification fails, the video call option usually works but requires a longer wait.

How to Pay the IRS Using Direct Pay

IRS Direct Pay is the fastest way to make a one-time tax payment. It’s free, secure, and doesn’t require creating an account—you can use it as a guest.

What Is IRS Direct Pay?

Direct Pay lets you pay federal taxes directly from your checking or savings account at no cost. You don’t need to remember a password or create a login. Each time you use it, you verify your identity using information from a prior year tax return.

What You Can Pay with Direct Pay

Balance due on your tax return (Form 1040)
Estimated tax payments (Form 1040-ES)
Extension payments (Form 4868)
Amended return balance due (Form 1040-X)
Installment agreement payments
Penalty and interest payments

Step-by-Step Payment Process

Step 1: Go to IRS Direct Pay

Navigate to irs.gov/directpay and click “Make a Payment.”

Step 2: Select Payment Details

Choose your reason for payment from the dropdown menu. Common options include “Balance Due” for amounts owed on a filed return, “Estimated Tax” for quarterly payments, and “Extension” for buying more time to file.

Select the tax form your payment applies to (usually 1040 for individuals) and the tax year.

Step 3: Verify Your Identity

Enter your Social Security Number and date of birth. Then enter your name and address exactly as they appear on the tax return you’re using for verification.

Select a prior tax year (any year you filed works) and enter your filing status and address from that year. This information must match IRS records exactly.

Step 4: Enter Payment Information

Enter your bank’s routing number (9 digits, found at the bottom left of your checks or in your online banking). Enter your account number and confirm it. Select whether the account is checking or savings.

Step 5: Review and Submit

Choose your payment date. You can pay today or schedule a payment up to 365 days in advance.

Review all information carefully. Once everything looks correct, submit your payment.

Save your confirmation number. Write it down, take a screenshot, or have it emailed to you. You’ll need this number to look up, change, or cancel your payment.

Important Limits and Rules

Maximum payment: $9,999,999.99 per transaction
Daily limit: 2 payments per 24-hour period
Scheduling: Up to 365 days in advance
Cutoff time: Payments submitted after 8 p.m. ET are posted as the next business day
Changes: You can modify or cancel a payment up to 2 business days before the scheduled date

Confirming Your Payment Posted

After 2 business days, log into your IRS Online Account (or create one if you haven’t) to verify your payment was applied. Your bank statement will also show the withdrawal.

Why We Recommend Direct Pay: It’s free, requires no registration, and gives you instant confirmation. For most individual taxpayers paying a balance due or estimated taxes, Direct Pay is the simplest option.

How to Use EFTPS for Business and Estimated Tax Payments

The Electronic Federal Tax Payment System (EFTPS) is a free service from the U.S. Treasury designed for taxpayers who make frequent or recurring payments. It’s especially important for business owners.

Who Should Use EFTPS

Business owners making employment tax deposits – If you have employees, federal law requires you to deposit payroll taxes electronically. EFTPS is the standard method.
Self-employed individuals making quarterly estimated payments – EFTPS lets you schedule all four quarterly payments at once and track your payment history.
Corporations paying estimated corporate income tax – Large payments and recurring deposits are easier to manage through EFTPS.
Anyone who wants a payment history – EFTPS stores 15 months of payment records you can access anytime.

Important Change for 2025

As of October 17, 2025, new individual taxpayers can no longer enroll in EFTPS. If you’re an individual who hasn’t enrolled yet, use IRS Online Account or Direct Pay instead. Existing EFTPS users can continue using the system, but the IRS encourages transitioning to the IRS Online Account over time.

Business enrollments remain open and unaffected.

How to Enroll in EFTPS (Businesses)

Step 1: Gather Your Information

Before starting enrollment, have ready:

Employer Identification Number (EIN)
Business name and address exactly as registered with the IRS
Bank routing and account numbers
Contact information (phone and email)

Step 2: Enroll Online

Go to eftps.gov and click “Enrollment.” Select “Business” and complete the enrollment form with your information. Double-check that your business name matches IRS records exactly—even small differences can cause problems.

Submit your enrollment and wait for your PIN to arrive by mail. This typically takes 5–7 business days.

Step 3: Activate Your Account

Once you receive your PIN letter, go back to eftps.gov. Call 1-800-982-3526 to get a temporary Internet password. Log in using your EIN, PIN, and temporary password, then create your permanent password.

How to Make a Payment Through EFTPS

Log in at eftps.gov using your EIN (or SSN for existing individual accounts), PIN, and password
Select “Make a Payment”
Choose the tax form (e.g., 941 for payroll taxes, 1040-ES for estimated taxes)
Select the tax period
Enter the payment amount
Choose your payment date
Review and confirm
Save your EFT Acknowledgment Number

Important timing rule: Payments must be scheduled by 8 p.m. ET at least one calendar day before the tax due date to be considered timely.

EFTPS vs. Direct Pay: Which Should You Use?

Feature	EFTPS	Direct Pay
Cost	Free	Free
Account required	Yes	No
Setup time	5–7 days	None
Payment history	15 months viewable	Not stored
Schedule recurring payments	Yes	No (one at a time)
Business/payroll taxes	Yes	Limited
Individual enrollment	Closed to new users	Open

For Business Owners: EFTPS enrollment is essential if you have employees. Payroll tax deposits must be made electronically, and EFTPS gives you tracking, scheduling, and 15 months of payment history.

How to Pay the IRS by Credit Card, Debit Card, or Digital Wallet

If you don’t want to use your bank account or need to pay immediately, the IRS accepts credit cards, debit cards, and digital wallets through authorized third-party processors.

How Card Payments Work

The IRS doesn’t process card payments directly. Instead, authorized payment processors handle these transactions and charge convenience fees for their service. The IRS receives your payment; it does not receive any portion of the fee.

Authorized Payment Processors (2025)

Processor	Debit Card Fee	Credit Card Fee	Digital Wallets	Website
Pay1040	$2.50	1.87%	PayPal, Click to Pay	pay1040.com
ACI Payments	$2.20	1.98%	PayPal, Click to Pay	acipayonline.com

Note: PayUSAtax.com discontinued IRS payment processing as of January 1, 2025. If you used them previously, you’ll need to switch to one of the processors above.

Step-by-Step Card Payment

Go to irs.gov/payments and click “Pay by Debit or Credit Card”
Choose a payment processor from the list
Enter your tax information (SSN, tax form, tax year)
Enter the payment amount
Enter your card details (number, expiration, CVV)
Review the convenience fee and total amount
Submit your payment
Save your confirmation for your records

When Card Payments Make Sense

Earning rewards: If your credit card offers 2%+ cash back or rewards, you may come out ahead despite the ~1.9% fee
Cash flow timing: You need to delay the actual cash outflow from your bank account
Convenience: You don’t have your bank routing and account numbers handy
Immediate processing: Payment is credited right away, no waiting for bank transfers

When Card Payments Don’t Make Sense

Large payments: A 1.87% fee on a $10,000 payment costs you $187
Free alternatives available: Direct Pay and EFTPS cost nothing
Carrying a balance: Credit card interest will far exceed any rewards benefit

Payment Limits and Restrictions

The IRS limits how many card payments you can make per tax type per year (varies by situation)
Payments of $100,000 or more may have additional verification requirements
Employment taxes (payroll deposits) cannot be paid by credit card

Fee Reality Check: A 1.87% fee on a $10,000 payment costs $187. Unless you’re earning significant rewards or truly need the convenience, free options like Direct Pay are usually better for your wallet.

How to Make a Same-Day Wire Payment to the IRS

Same-day wire transfers are the fastest way to get a payment to the IRS but come with bank fees and more complexity. Use this method only when you need guaranteed same-day credit.

When You Need a Same-Day Wire

Paying more than $1 million (exceeds EFTPS same-day limit)
Missed the EFTPS 8 p.m. deadline and the payment is due today
Need guaranteed same-day credit to avoid penalties
International taxpayers with U.S. bank accounts making large payments

Step-by-Step Wire Payment Process

Step 1: Download the Same-Day Taxpayer Worksheet

Go to irs.gov/payments and click “Same-day wire” under payment options. Download the Same-Day Taxpayer Worksheet PDF. This form tells your bank exactly how to format the wire so the IRS can apply it correctly.

Step 2: Complete the Worksheet

Fill in all required fields:

Total payment amount (include penalties and interest if applicable)
Taxpayer Identification Number (your EIN or SSN, 9 digits, no dashes)
Name control (first 4 characters of your business name, or first 4 letters of your last name for individuals)
Taxpayer name (exactly as registered with IRS)
Tax type code (e.g., 1040 individual income tax = 10404)
Tax year (2-digit year)
Tax month (for quarterly payments)

Step 3: Contact Your Bank

Call your bank to confirm same-day wire availability and ask about:

Their fee (typically $25–$50 for domestic wires)
Their cutoff time for same-day processing (must be early enough that the wire reaches the IRS by 5 p.m. ET)
Whether you can initiate online or must visit a branch

Step 4: Initiate the Wire Transfer

Bring your completed worksheet to a bank branch, or use online banking if your bank allows wire transfers online. Provide the wire instructions:

Receiving ABA/Routing Number: 091036164
Receiving Bank Name: US TREAS SINGLE TX
Beneficiary Information: Formatted from your worksheet (TIN:Name Control:Taxpayer Name:Tax Type:Tax Year:Tax Month)

Step 5: Confirm Payment

Your bank will provide a wire confirmation number. If the wire reaches the Federal Tax Collection Service by 5 p.m. ET, your payment will post the same day. Wires received after 5 p.m. ET are rejected and returned to your bank—they are not held for the next business day.

Wire Payment Checklist

[ ] Same-Day Taxpayer Worksheet downloaded and completed
[ ] Correct tax type code identified
[ ] Bank fees confirmed and acceptable
[ ] Wire submitted well before 5 p.m. ET (account for your bank’s processing time)
[ ] Wire confirmation number saved

Use Wires Sparingly: Same-day wires involve bank fees and more complexity than other methods. Reserve them for situations where you need guaranteed same-day posting or are paying amounts above EFTPS limits.

What to Do If You Can’t Pay Your Taxes in Full

If you owe more than you can pay right now, you still have options. The worst thing you can do is ignore the situation—that leads to growing penalties, interest, and eventually collection actions.

File Your Return Anyway

Even if you can’t pay, file your tax return on time. The failure-to-file penalty is 5% of unpaid taxes per month (up to 25%), while the failure-to-pay penalty is only 0.5% per month (up to 25%). By filing on time and paying what you can, you significantly reduce your total penalties.

Short-Term Payment Plan (Up to 180 Days)

If you can pay your balance within 180 days, apply for a short-term payment plan.

Who qualifies: Taxpayers who owe less than $100,000 in combined tax, penalties, and interest.

Setup fee: Free if you pay by Direct Pay or EFTPS.

How to apply: Go to irs.gov/opa (Online Payment Agreement) and complete the application. You’ll get immediate approval in most cases.

Interest continues to accrue until you pay in full, but the late payment penalty is reduced from 0.5% to 0.25% per month while you’re on a payment plan.

Long-Term Installment Agreement (Monthly Payments)

If you need more than 180 days, apply for an installment agreement with monthly payments.

Who qualifies: Individual taxpayers who owe less than $50,000 (criteria expanded in 2025) for the simplified application process. Larger amounts require more documentation.

Setup fees:

Online application with Direct Debit: $22
Online application without Direct Debit: $69
Phone, mail, or in-person application: $178
Low-income taxpayers may qualify for fee waivers or reimbursement

How to apply: Use the Online Payment Agreement tool at irs.gov/opa, call the IRS, or mail Form 9465 (Installment Agreement Request).

Offer in Compromise (Settle for Less)

An Offer in Compromise lets you settle your tax debt for less than you owe, but approval is difficult.

The IRS considers your ability to pay, income, expenses, and asset equity. Most offers are rejected. If you’re considering this option, consult with a tax professional who can evaluate whether you realistically qualify.

Application fee: $205 (waived for low-income taxpayers)

Interest and Penalties Continue

Even on a payment plan, interest accrues daily on your unpaid balance, and the late payment penalty applies (though at a reduced rate). The sooner you pay, the less you’ll owe in total.

Don’t Ignore IRS Bills: Unpaid taxes grow quickly with penalties and interest. A $10,000 balance can exceed $15,000 within a few years. If you can’t pay in full, set up a payment plan immediately to minimize the damage.

Frequently Asked Questions About IRS Electronic Payments

Can I still pay the IRS by check in 2025?

Yes, for now. As of late 2025, the IRS still accepts checks for tax payments. However, Executive Order 14247 requires transition to electronic payments “as soon as practicable,” with full implementation expected by 2027. We recommend switching to electronic payments now to avoid future disruptions and potential processing delays.

What happens if I don’t provide direct deposit information on my 2025 tax return?

If you file a 2025 tax return (in 2026) without direct deposit information and don’t qualify for an exception, the IRS will hold any paper check refund for six weeks. After that period, they may issue a paper check or require you to provide banking information. Providing direct deposit details when you file avoids this delay entirely.

Is IRS Direct Pay safe?

Yes. IRS Direct Pay uses the same encryption and security protocols as major banks. The IRS does not store your bank account information after processing your payment. Each payment requires identity verification using information from your tax return, which only you should know.

How long does it take for the IRS to process an electronic payment?

Electronic payments via Direct Pay, EFTPS, or your IRS Online Account typically post within 1–2 business days. Credit card payments process immediately but may take 5–7 days to appear in your IRS account. Same-day wire transfers post the same day if received by 5 p.m. ET.

Can I pay someone else’s taxes for them?

With IRS Direct Pay, you can only pay for a spouse if you filed a joint return and your name was listed second on the return. In that case, you enter the primary taxpayer’s information (the person listed first) during identity verification. For other situations, the taxpayer should make the payment themselves using their own information.

What if my bank doesn’t work with IRS Direct Pay?

IRS Direct Pay works with virtually all U.S. banks and credit unions. If you encounter an issue, verify you entered the routing and account numbers correctly. As an alternative, you can pay by credit/debit card (with fees), use EFTPS if enrolled, or open a free checking account at a compatible bank.

How do I pay quarterly estimated taxes electronically?

Use IRS Direct Pay, EFTPS, or your IRS Online Account. With Direct Pay, select “Estimated Tax” as your reason for payment and “1040-ES” as the form. Choose the appropriate tax year and quarter. You can schedule payments up to 365 days in advance, so you can set up all four quarterly payments at once.

What’s the difference between IRS Direct Pay and EFTPS?

Direct Pay requires no registration and works best for one-time payments. You verify your identity each time using a prior tax return. EFTPS requires enrollment (5–7 days for PIN by mail) but provides 15 months of payment history, allows scheduling recurring payments, and is required for business payroll tax deposits. For most individuals, Direct Pay is simpler. For businesses, EFTPS is essential.

Get Help with Tax Payments or Tax Planning

Navigating IRS payment options doesn’t have to be confusing. If you’re unsure which method is right for your situation, owe more than you can pay, or want to reduce your tax burden through proactive planning, a CPA can help.

Serena Do, CPA, and the SDO CPA team help Texas businesses and individuals with tax payments, IRS payment plans, and tax planning strategies. With 10+ years of Big Four and family-office experience, we provide proactive guidance to minimize your tax burden and keep you compliant.

Common situations where we help:

Setting up estimated tax payments for self-employed individuals
Helping business owners meet payroll deposit requirements
Negotiating payment plans with the IRS
Responding to IRS notices about unpaid taxes
Year-round tax planning to reduce future balances due

Schedule a consultation to discuss your tax situation: Contact SDO CPA

This article is for informational purposes only and does not constitute tax or legal advice. Tax laws and IRS procedures change frequently. Consult with a qualified tax professional for advice specific to your situation.