How to Make a Payment with Your Tax Extension
Before you complete your tax extension request, remember this important fact: a tax extension gives you more time to file your income tax return, but it does not give you more time to pay any tax that you owe to the IRS.
So, if on April 15th (or March 15th for businesses) you owe the IRS money, you are expected to pay that full amount or else you may be subject to interest, penalties, and late fees.
There are a few ways to make a payment with your tax extension using the FileLater system. Here is an explanation of the main payment options:
Electronic Funds Withdrawal (EFW) Payment
If you e-file taxes online using your personal computer — through a tax extension professional like FileLater, for example — you can make a tax payment by authorizing an Electronic Funds Withdrawal (EFW) directly from your bank account. Make sure to check with your banking institution to confirm that an Electronic Funds Withdrawal is allowed, and remember to obtain the correct routing and account numbers.
If you owe income tax to the IRS and you want to have the money electronically withdrawn from your bank account, you will be asked to agree to the following declaration: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 a tax extension request online (Form 4868 or Form 7004) and simultaneously “e-pay” the tax that they owe. Remember that e-filing your tax extension means you don’t need to send in a paper application. You will receive a written copy of the EFW payment authorization once you complete the transaction. It is important to keep this copy for your records.
NOTE: For the most part, business entities are required to remit their Federal taxes electronically. See the specific form instructions for rules on how your business tax payments should be made.
Tax Payment by Check or Money Order
When paying by check or money order, mail your payment with the applicable tax form or voucher to the address listed in the Instructions. For example, if you e-file Form 4868 but you’d rather mail your tax payment to the IRS, you should use a completed Form 4868 as a payment voucher and mail it to the appropriate address (listed on Page 4 of 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 (SSN), daytime phone number, and "[Tax Year] Form 4868" (i.e. the words “2014 Form 4868”) on your check or money order. Do not staple or attach your payment to Tax Form 4868.