Pay Taxes by Electronic Funds Withdrawal

Features and Benefits of Electronic Funds Withdrawal:

It's convenient. Individual and business filers can e-file and e-pay in a single step.
It's free, but check with your financial institution about any fees it may charge.
It’s safe and secure. Payment information is used only for the tax payment(s) authorized by the taxpayer. Unauthorized withdrawals aren't made.
Bank account information is safeguarded along with other tax information.
Payment information will not be disclosed for any reason other than for processing payment transaction(s) authorized by the taxpayer.
Form 1040 family, 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 on a future date, up to and including the return due date.
For Form(s) 720, 940, 941, 944 and 2290 the electronic payment 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 EFW payments is the date the return or form is successfully transmitted.
Up to four Form 1040-ES estimated tax payments for TY 2012 can be submitted with the TY 2011 e-filed return, regardless if the TY 2011 return has a balance due or not.
- 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:

Using Free File, commercial software or a paid preparer, e-file your federal tax return, and at the same time, use EFW to make your payment(s).
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).
- Enter your financial institution's routing transit number and account number. Check with your financial institution to confirm these numbers.
- Select the type of account from which the payment is to be debited (checking or savings).
- Enter the amount of your payment. A single payment cannot equal or exceed $100 million.
Penalty and/or interest can be added to your balance due payment. Some commercial software will compute these amounts or they can be computed manually. Or you can wait and be billed for any applicable penalty and/or interest you may owe.
Electronic funds withdrawal payments 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. Do not to include the check number.
Type of Account	The type of account can either be savings or checking. Many credit unions don't allow an electronic funds withdrawal from a savings account. Please check with your financial institution for further details.
Amount of Tax Payment	Enter the amount you want withdrawn from your bank account. Depending on the software used payments should be in whole dollars or dollars and cents. Employment and excise tax payments and payments made using Modernized e-File software should be made in dollars and cents.
Tax Type Code	The commercial software used will display all values allowed for this field (e.g., 1040E, 10401).
Requested Payment Date	Enter the date you would like funds to be withdrawn from your bank account in the format: YYYYMMDD (e.g. 20120417).
Taxpayer's Daytime Telephone Number	Enter a telephone number where you can be reached Monday through Friday between the hours of 8 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.
“IRS USA Tax Payment,” "IRS USA Tax Pymt," or something similar will be shown on your 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 be withdrawn on 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 your return is accepted, information pertaining to your payment, such as the account information, payment date or amount, cannot be changed. If changes are needed, the only option is to cancel the payment transaction and choose another payment method.
Call IRS e-file Payment Services at 1-888-353-4537 to inquire about or cancel a payment, or to report problems such as bank closures, lost or stolen bank account numbers, closed bank accounts, or unauthorized transactions. If calling to inquire about your payment, wait 7 to 10 days after your return was accepted before calling. Customer Service is available 24/7.
Scheduled payments can be cancelled up to 8 p.m. local time, two (2) business days before the scheduled payment date. The cancellation must be authorized by the taxpayer.
If a payment is returned by the financial institution (e.g., due to insufficient funds, incorrect account information, closed account, etc.) the IRS will mail a notification letter to the address we have on file for you, explaining why the payment could not be processed, and providing alternate payment options. For questions regarding the letter, please call 1-888-353-4537.
In the event your financial institution is unable to process your payment request, you will be responsible for making other payment arrangements, 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 will return any improperly transferred funds.

Additional information is available in the articles below:

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

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

Pay Taxes by Credit or Debit Card

Electronic Federal Tax Payment System (EFTPS)

Download IRS Forms and Instructions

Electronic Payment Options Home Page

Page Last Reviewed or Updated: 12-Aug-2012