Q:

How are taxes paid?

A:

Quick Answer

Taxes can be paid with a debit card, or paid directly from a bank account. If the payment cannot be made in full and on time, an extension may be granted.

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Full Answer

There are a multitude of ways to pay yearly taxes to the IRS. If the tax return was e-filed, an automatic funds withdrawal can be done. The taxpayer can enroll in the Electronic Federal Tax Payment System. The bank can also process a same day wire transfer to the Internal Revenue Service, or the taxpayer can pay with their account over the Internet. In addition, a check or money order may be mailed to the IRS headquarters. A credit or debit card can be used to make a payment over the phone or Internet.

If the taxpayer cannot pay the entire amount by the April deadline, arrangements can be made with the IRS. According to the IRS website, a taxpayer cannot owe more than $25,000 in order to apply for an arrangement. The IRS may allow the money owed to be paid in installments, or the taxpayer can be given an extended deadline. The money owed can even be forgiven if the taxpayer meets a few very strict requirements, as stated by the IRS.

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