Pay Taxes by Electronic Funds Withdrawal

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Pay Taxes by Electronic Funds Withdrawal

Features and Benefits of Electronic Funds Withdrawal:

It's convenient. Taxpayers and business filers can e-file and e-pay in a single step.
It's free. Although there are no service charges for using the payment option, please check with your financial institution about any fees it may charge.
It’s safe and secure. Payment information will be used only for the tax payment(s) authorized by the taxpayer. No unauthorized withdrawals will be made.
Bank account information is safeguarded along with other tax information.
Payment information will not be disclosed for any reason other than for processing the transaction authorized by the taxpayer.
Form 1040 series, Form 1120 series, Form(s) 2350, 4868, 7004, 8868 and 990-PF can be e-filed early and, at the same time, have an electronic funds withdrawal (EFW) scheduled for settlement from a bank account on a future date, up to and including the return due date. Form(s) 720, 940, 941, 944 and 2290 will be effective (i.e., settled) on the date the return or form is e-filed.
After the return due date, the effective date for all payments will be the same as the date the return or form is filed.
Regardless of if there is a balance due on the Form 1040 series return, an individual taxpayer can schedule up to four Form 1040-ES payments when e-filing the return.
- A separate payment record is required for each estimated payment.
- The bank account information can be the same or different for each payment entered.

How to Make an Electronic Funds Withdrawal Payment:

This payment option is available through most tax preparation software and tax professionals.
Upon selection of the electronic funds withdrawal option, a payment record will display for entry of payment information (see EFW Payment Record Item and Instructions table below).
Taxpayers must know their account number and financial institution's routing transit number.
Taxpayers must identify the type of account from which the payment is to be made (checking or savings).
Account numbers and routing transit numbers can be found on checks and share drafts.
Taxpayers should check with their financial institution if there are any questions regarding these numbers and to confirm that the financial institution will allow an electronic withdrawal from the specified account. The majority of rejected payments are due to issues with the account number and/or routing transit number.
Some tax preparation software may allow partial payments to be made via EFW.
New for 2008, penalty and/or interest can be added to, and paid with, the balance due on the return. Some software packages will compute these amounts; and if not, they can be estimated. A taxpayer can also choose to wait and be billed for any applicable penalty and/or interest they may owe.
Electronic funds withdrawals cannot be initiated after the return or form is filed.

EFW Payment Record Item and Instructions
Item	Instructions
Primary SSN	This is the social security number of the first person listed on the return. Note: For Business Return/Forms an Employer Identification Number would be entered instead of an SSN.
Secondary SSN	If applicable, this is the social security number of the second person listed on the return.
Routing Transit Number	The first two digits of the routing number must be 01 through 12 or 21 through 32. Do not use a deposit slip to verify the number because it may contain internal routing numbers that are not part of the actual routing number. On the sample check below, the routing number is 250250025.
Bank Account Number	The account number can be up to 17 digits. Omit hyphens, spaces, and special symbols. Enter the number from left to right and leave any unused boxes blank. On the sample check below, the account number is 20202086. Be sure not to include the check number.
Type of Account	The type of account can either be savings or checking. Many credit unions will not allow an electronic funds withdrawal from a savings account. Please check with your financial institution for further details.
Amount of Tax Payment	Enter the exact amount that you would like electronically withdrawn from your bank account. Most payments can be in whole dollars (round cents to the nearest whole dollar). However, employment and excise tax payments should be made in dollars and cents.
Tax Type Code	This is the same as the Form Number (1040, 1040ES, etc.).
Requested Payment Date	Enter the date you would like funds to be withdrawn from your bank account in the format: YYYYMMDD (e.g. 20080415).
Taxpayer's Daytime Telephone Number	Enter a telephone number where you can be reached Monday through Friday between the hours of 7:00 A.M.and 5:30 P.M. This number will only be used to contact you if there is a problem with your payment information.

Sample Check:

Facts You Need to Know:

This transaction authorizes the U.S. Department of the Treasury (through a Treasury Financial Agent) to transfer the specified payment amount from the taxpayer’s bank account to the Treasury’s account.
The “United States Treasury Tax Payment” is included on the monthly bank statement as proof of payment.
Funds are withdrawn on the payment date selected. However, if a weekend or bank holiday is designated, the payment will not be withdrawn until the next business day.
The payment amount will be withdrawn in a single transaction. No recurring or partial withdrawals will be made.

Cancellations, Errors and Questions:

Once the IRS e-file return is accepted, the scheduled payment date cannot be changed. If the date needs to be changed, the only option is to cancel the payment transaction and choose another payment method.
Taxpayers can call the Treasury Financial Agent, Customer Service, at 1-888-353-4537, toll-free, to cancel a payment or to report problems such as bank closures, lost or stolen bank account numbers, closed bank accounts or unauthorized transactions. Customer Service is available 24 hours a day, 7 days a week.
Scheduled payments can be cancelled up to 8:00 P.M. Eastern Time, two (2) business days before the scheduled payment date. The cancellation must be authorized by the taxpayer.
Taxpayers may also call 1-888-353-4537 to inquire about payments but should wait at least five (5) days after the e-file return is accepted before calling.
Taxpayers will be notified if a payment is returned by the financial institution due to insufficient funds, incorrect account information, closed accounts, etc. If this occurs, the IRS will send a notification letter to the address on record explaining why the payment could not be processed. The letter will provide alternative options for making the payment. For questions regarding the letter, please call 1-888-353-4537.
In the event the financial institution is unable to process the transaction, the taxpayer will be responsible for the tax payment and for any penalties and interest incurred.
Contact the IRS immediately at 1-800-829-1040 if there is an error in the amount withdrawn.
In the event Treasury causes an incorrect amount of funds to be withdrawn from a bank account, Treasury is responsible for returning any improperly transferred funds.

Additional information is available in the articles below:

Electronic Payment Options for Individuals

Electronic Funds Withdrawal and Credit or Debit Card Payment Options for Businesses

Pay Taxes by Credit or Debit Card

The Electronic Federal Tax Payment System (EFTPS)

Download IRS Forms, Instructions and Publications

Electronic Payment Options Home Page