News

The most trending tax and financial industry issues.

< Back To Articles
Author Picture

Lane Keeter, CPA

Partner: Tax Consulting, Estate Planning, and Heber Springs Managing Partner

Top Ten Things to Know About Making Federal Tax Payments

7 Apr 2010

Will you be making a payment with your federal tax return this year? With tax filing day quickly approaching, here are 10 important things you should know about making tax payments correctly, as provided by EGP, Pllc, Certified Public Accountants & Consultants. According to Lane Keeter, CPA, Director of Tax Services for the firm, "Following these tips will protect the taxpayer, speed processing of the return, and help ensure the payment is applied accurately."

  1. Never send cash!
  2. If you file electronically, you can file and pay in a single step by authorizing an electronic funds withdrawal via tax preparation software or a tax professional.
  3. Whether you file a paper return or electronically, you can pay by phone or online using a credit or debit card.
  4. Electronic payment options provide an alternative to paying taxes or user fees by check or money order. You can make payments 24 hours a day, seven days a week. Visit IRS.gov and search e-pay, or refer to Publication 3611, e-File Electronic Payments for more details.
  5. If you itemize, you may be able to deduct the convenience fee charged for paying individual income taxes with a credit or debit card as a miscellaneous itemized deduction on Form 1040, Schedule A, Itemized Deductions. The deduction is subject to the 2 percent limit.
  6. Enclose your payment with your return but do not staple it to the form.
  7. If you pay by check or money order, make sure it is payable to the "United States Treasury." It is important to write this out completely to avoid check tampering. Never abbreviate and do not make your check out simply to "IRS", as this can easily be changed to someone's name.
  8. Always provide your correct name, address, Social Security number listed first on the tax form, daytime telephone number, tax year and form number on the front of your check or money order.
  9. Complete and include Form 1040-V, Payment Voucher, when sending your payment to the IRS. This will help the IRS process your payment accurately and efficiently.
  10. For more information, call 800-829-4477 for TeleTax Topic 158, Ensuring Proper Credit of Payments. You can also find out more in Publication 17, Your Federal Income Tax and Form 1040-V, both available at IRS.gov.

Keeter points out that even if you are filing for the automatic extension of time to file your return, payment of at least 90% of the taxes due still must be made on or before April 15, 2010, otherwise, interest and penalties will apply. EGP, PLLC (www.egpcpas.com) is a full-service Certified Public Accounting firm with offices in Heber Springs and North Little Rock. It is one of Arkansas' largest accounting and consulting firms, currently ranked 8th largest in the state by Arkansas Business Magazine, with clients throughout the state and nation. In addition to accounting, small business and tax services, the full-service firm offers estate and tax planning, litigation support services, business valuation services and comprehensive financial statement audit services. For more information: Lane Keeter at 501-362-8281

Prev Next