How do I pay tax in the US?

Have you filed a US tax return and had a tax underpayment? Here's a clear guide on how to pay your tax.

1. Payment through a US bank account
2. Payment by debit/credit card or cash
3. Payment through a Czech bank

Payment through a US bank account

This payment method is only available if you are the owner of a US bank account. There are two ways to pay the tax through a US bank account:

• IRS Direct Pay,
• Electronic Federal Tax Payment System (EFTPS).

IRS Direct Pay - you make your payment through the Internal Revenue Service (IRS) website in five steps (no registration required):

1. You will select the “Make a payment” option.
2. You fill in the type of payment, the reason for the payment and the tax period.
3. Verify your identity (the previous year's tax return is used for verification).
4. You enter your payment details.
5. You will confirm the details you have entered and submit them.

Electronic Federal Tax Payment System (EFTPS) - payment is made via the EFTPS website, where registration is required. You can do this by using the “ENROLL” button. Once you have registered and verified your details, you will receive a sheet with the details needed to make the payment.

Payment by debit/credit card or cash

If you do not have a bank account in the US, you can pay the tax in cash, or with a debit or credit card issued by your home bank. However, there is a fee. The processing fee depends on the type of payment and card, as well as the type of payment processing provider you choose. The IRS offers two payment processing providers:

• Pay1040 - you make the payment through the payment processing provider's online system. Pay1040 accepts Visa, Mastercard, Discover, American Express, STAR, Pulse, NYCE, Accel, AFFN, Cirrus, Interlink, Jeanie, Shazam, Maestro. Payment processing fee is:

  • USD 2.15 - when using a consumer or personal debit card,
  • 1.75% of the amount to be charged (but minimum USD 2.50) - when using a credit card,
  • USD 2.89 - when using a commercial credit or debit card,
  • USD 1.50 - when paying in cash.
    
    

• ACI Payments, Inc. - you make the payment through the payment provider's online system. ACI Payments, Inc accepts Visa, Mastercard, Discover, American Express, STAR, Pulse, NYCE. The payment processing fee is:

  • USD 2.10 - when using a consumer or personal debit card,
  • 1.85% of the amount to be charged (but minimum USD 2.50) - when using a credit card,
  • USD 2.95 - when using a commercial credit or debit card,
  • USD 1.50 - when paying in cash.

The procedure for paying the tax by credit card:

1. You choose one of two payment providers on the IRS online site. Confirm your selection by clicking the “Make a payment” button.
2. After selection, you will be redirected to the payment provider's page where you will fill in the relevant fields required to pay the tax.

Procedure for payment of tax in cash:

• You choose one of two payment providers on the IRS website. Confirm your selection by clicking the “Make a payment” button.
• After selecting it, you will be redirected to the payment provider's website where you will fill in the relevant fields required to pay the tax.
• When selecting the payment method, choose “Cash payment”. The system will then prompt you to enter your e-mail address, to which a payment barcode will be delivered. You print it out and take it to the payment provider, where you can make the payment in cash. Upon receipt of the payment, the provider will issue you with a payment receipt.

Payment through a Czech bank

You can also pay the tax through your home bank. To pay, you will need:

1. A completed “SAME-DAY WIRE TAXPAYER WORKSHEET” form with the correct tax code and tax period (the bank employee will make the transfer based on the information on the form).
2. IRS account number - 20092900IRS.
3. IRS RTN/ABA account number - 091036164 US TREAS SINGLE TX.

Paying through your home bank can be complicated as not every bank is able to process international bank transfers. The IRS also warns of the potential high costs associated with international transfers.

Need help with your US tax refund or payment of your taxes? Contact us.

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