The IRS gives you several ways to pay, and the method you choose depends on how much you owe and when you need to pay
You can pay the IRS online, by phone, by mail, or in person. The fastest and most common route is the IRS Direct Pay system on the IRS website, which lets you transfer money from your bank account at no cost. If you owe a smaller amount and want to pay by check or money order, you can mail it with Form 1040-V. For larger bills or if you want to spread payments over time, the IRS offers installment agreements that let you pay monthly.
The method you choose affects how quickly the IRS records your payment and whether you can set up a payment plan. Starting with the right method saves you from having to contact the IRS later to fix a misdirected payment or clarify which tax year your money went toward.
Key Takeaways
- IRS Direct Pay on the IRS website is free, immediate, and works for any amount — you transfer money directly from your bank account.
- If you cannot pay in full, you can set up a monthly installment agreement through the IRS website or by phone, though the IRS charges a setup fee and interest on the unpaid balance.
- Mailing a check or money order requires Form 1040-V so the IRS knows which tax year and which person the payment is for.
- The IRS accepts payment by phone through an approved payment processor, but you will pay a convenience fee for this method.
- If you owe $25,000 or less and want a payment plan, you can set one up online without calling the IRS.
Paying in full online through IRS Direct Pay
IRS Direct Pay is the fastest and cheapest way to pay if you have the full amount. You go to the IRS website, enter your Social Security number or employer identification number, your filing status, and the amount owed, and then authorize a transfer from your bank account. The money moves within one business day, and the IRS records it immediately.
You do not need to create an account or provide a credit card. The IRS does not charge a fee for Direct Pay, and you can schedule the payment for a future date if you want to time it with your paycheck. The system works for any amount, whether you owe $50 or $50,000.
Direct Pay is available year-round except for a brief maintenance window each year. If the system is down when you try to pay, you can use one of the other methods or try again the next day.
Setting up a monthly payment plan if you cannot pay all at once
If you owe more than you can pay immediately, the IRS lets you set up an installment agreement to pay monthly. You can do this online through the IRS website if you owe $25,000 or less. For amounts over $25,000, you must call the IRS at 1-800-829-1040 or work with a tax professional.
The IRS charges a setup fee (which varies depending on how you set it up) and charges interest and penalties on the unpaid balance each month. The interest rate is set by the IRS quarterly and is currently around 8 percent annually, though this changes. The monthly payment amount depends on how much you owe and how long you want to take to pay it off.
Once your agreement is approved, you make monthly payments on the due date each month. You can change your payment amount or end date later if your situation changes, though the IRS may charge another fee for modifications.
Paying by check or money order through the mail
If you prefer to mail a payment, write a check or money order for the amount you owe and include Form 1040-V with it. Form 1040-V is a payment voucher that tells the IRS which tax year the payment is for and which person it belongs to. Without this form, the IRS may not know how to apply your payment.
Mail the check, Form 1040-V, and a copy of your tax return to the address shown on the Form 1040-V instructions. The address varies by state. Payment by mail takes longer to process — usually two to three weeks — so the IRS may continue to send notices during that time even though your payment is in transit.
Do not send cash through the mail. If you lose a check in the mail, you can stop payment at your bank and send another one, but this costs money and delays the IRS from recording your payment.
Paying by phone or through a payment processor
You can pay by phone by calling one of the IRS-approved payment processors. The IRS website lists the current processors and their phone numbers. When you call, you provide your tax information and authorize a charge to your credit card or debit card.
Payment processors charge a convenience fee for this service — typically 2 to 3 percent of the amount you pay. This fee is in addition to what you owe the IRS. The payment is recorded within one business day, similar to Direct Pay, but the extra cost makes this method more expensive unless you have a specific reason to use a credit card (such as earning rewards points).
Some people use this method because they want to charge the payment to a credit card to spread the cost over time, but this means you are paying both the IRS and the credit card company interest, which is usually more expensive than setting up an IRS installment agreement.
What happens if you miss a payment or cannot pay on time
If you cannot pay by the tax deadline (usually April 15), you can still pay late. The IRS charges a failure-to-pay penalty and interest on the unpaid amount starting from the due date. The penalty is typically 0.5 percent of the unpaid tax per month, and interest accrues daily.
Paying late does not prevent you from setting up a payment plan. In fact, if you know you cannot pay on time, setting up an installment agreement before the deadline can sometimes reduce the penalties. Contact the IRS or set up an agreement online as soon as you know you will owe.
If you receive a notice from the IRS saying you owe money, the notice will include instructions for payment and the deadline for responding. Following the instructions in the notice is important because ignoring it can lead to wage garnishment or bank levies.
Comparing payment methods side by side
| Payment Method | Cost | Speed | Best For |
|---|---|---|---|
| IRS Direct Pay | Free | 1 business day | Full payment from a bank account |
| Payment Processor (Phone/Card) | 2–3% convenience fee | 1 business day | Credit card payments or rewards |
| Check or Money Order by Mail | Free | 2–3 weeks | Preference for paper or no bank account |
| Installment Agreement | Setup fee + interest on balance | Varies (monthly payments) | Cannot pay in full |
Frequently Asked Questions
Can I pay the IRS with a credit card?
Yes, but only through an IRS-approved payment processor by phone, and you will pay a convenience fee of 2 to 3 percent on top of what you owe. Direct Pay does not accept credit cards — only bank transfers. If you want to use a credit card to spread the cost, an IRS installment agreement is usually cheaper than paying interest to both the IRS and the credit card company.
What if I pay the wrong amount or send it to the wrong address?
If you mail a check to the wrong address, it may be returned or delayed. Always use the address on Form 1040-V instructions for your state. If you overpay, the IRS will either refund the difference or apply it to next year's taxes. If you underpay, the IRS will send a notice asking for the remaining amount plus interest and penalties.
Do I need to include my Social Security number on a check?
Yes. Write your Social Security number or employer identification number on the check itself, along with the tax year the payment is for. This helps the IRS match the payment to your account. Always include Form 1040-V with your mailed payment so there is no confusion.
How long does an installment agreement take to set up?
If you set one up online for $25,000 or less, it can be approved within minutes. If you call the IRS or owe more than $25,000, approval typically takes a few business days. Once approved, your first payment is usually due within 30 days.
Can I change my payment plan after it is set up?
Yes. You can modify the payment amount, extend the payment period, or pay off the balance early without penalty. Changes made online are usually free, but changes made by phone or mail may include a modification fee. Log into your IRS account or call 1-800-829-1040 to make changes.