How to Make a Payment with Your Tax Extension

Before you comeplete your tax extension request, remember this important fact: a tax extension gives you more time to file your income tax return (e.g., Tax Form 1040), but it does not give you more time to pay any tax that you owe to the IRS. So, if on April 15 (or April 18 for the 2011 tax filing season) you owe the IRS money, you are expected to pay that full amount or else you may be subject to penalties and late fees.

There are several ways to make payments with your tax extension. Here is a summary of the main payment options:

Electronic Funds Withdrawal (EFW) Payment

If you e-file taxes online, using your personal computer or through a tax extension professional (like FileLater), you can make a payment by authorizing an Electronic Funds Withdrawal (EFW) directly from your bank account. Make sure to check with your financial institution to confirm that an electronic funds withdrawal is allowed, and to obtain the correct routing and account numbers. If you owe income tax and wish to have the money electronically withdrawn from your bank account, you will be asked to agree to the following declaration:

"I authorize the U.S. Treasury and its designated Financial Agent to initiate an ACH electronic funds withdrawal entry to the financial institution account indicated for payment of my federal taxes and the financial institution to debit the entry to this account. To revoke a payment, I must contact the U.S. Treasury Financial Agent at 1-888-353-4537 no later than 2 business days prior to the payment (settlement) date. I also authorize the financial institutions involved in the processing of the electronic payment of taxes to receive confidential information necessary to answer inquiries and resolve issues related to the payment."

The EFW payment option allows taxpayers to e-file their 4868 Form online and simultaneously “e-pay” the tax that they owe. You will receive a written copy of the EFW payment authorization once you complete the transaction. It is important to keep this for your records. If you e-file your tax extension, do not send in a paper Form 4868.

Credit Card Payment

You can apply for a tax extension by paying (part or all of) your income tax by credit card. To pay using a credit card, you will need to go through an IRS-approved service provider ― Link2Gov Corporation, RBS WorldPay, or Official Payments Corporation. Phone numbers and sites for the service providers are available on the IRS website.

You can use your American Express®, Discover®, MasterCard®, or Visa® credit card. A convenience fee will be charged by the service provider based on the amount you are paying. Note that fees may vary among the providers. You will be told what the fee is during the payment process, and you will have the option to either continue or cancel the transaction. You can also find out the fee amount be by calling the service provider's customer service number or by visiting their website. Do not add the convenience fee onto your tax payment.

When you make a tax extension payment by credit card, you will receive a confirmation number. Make sure to save this number for your records.

Payment by Check or Money Order

When paying by check or money order, mail your payment with Tax Form 4868 to the appropriate address (listed on the Instructions for Form 4868). Make your check or money order payable to the "United States Treasury"  and DO NOT SEND CASH. Also don’t forget to write your Social Security Number, daytime phone number, and the words "2010 Form 4868" on your check or money order. Do not staple or attach your payment to Tax Form 4868. Additionally, if you e-file Form 4868 online and mail a check or money order to the IRS for tax payment, use a completed paper Form 4868 as a payment voucher.