I criticize the IRS regarding paperwork often. Indeed, the IRS has a major problem dealing with correspondence. Yet many businesses must make numerous payments by check (because that’s the only way to do so) or EFTPS. This morning, I sent a client a link to IRS Direct Pay (to make an estimated payment) and I was surprised to see a screen telling me I can make business tax payments by IRS Direct Pay.
Now, you cannot use Direct Pay for all payments, but it does allow for many:
- Form 720 (federal excise tax)
- Form 940 (annual unemployment tax)
- Form 941 (employer’s federal tax)
- Form 943 (employer annual tax for AG employees)
- Form 945 (annual withheld federal income tax)
- Form 990PF (return of private foundation)
- Form 990T (exempt organization business income tax)
- Form 1042 (withholding tax for income of foreign persons)
- Form 1065 (US partnership return of income)
- Form 1120 (corporation income tax return)
- Civil Penalty
The system allows for balance due, estimated tax, and extension payments.
Kudos to the IRS for adding another method for businesses to meet their tax obligations.