Estimated Tax Payments Also Due July 15

You should plan on scheduling
multiple payments now.

As the 2019 tax filing and payment deadline approaches, taxpayers and businesses need to be aware that 2019 income tax liabilities as well as postponed April 15 and June 15, 2020, estimated tax payments are due July 15, 2020. This postponement provided temporary tax relief in response to the COVID 19 pandemic.

If you have a 2019 income tax liability as well as estimated tax for 2020, you must make two separate payments on or by July 15, 2020: One for your 2019 income tax liability and one for your 2020 estimated tax payments. The two estimated tax payments can be combined into a single payment.

A list of forms due July 15 is on the Coronavirus Tax Relief: Filing and Payment Deadlines page. Electronic payment options are the best way to make a tax payment.

Paying Electronically

Individuals – You can use Direct Pay for two payments each day. Direct Pay allows you to pay online directly from a checking or savings account for free and to schedule payments up to 365 days in advance. You will receive an email confirmation of your payments.

If you attempt to make at least three payments on the same day using Direct Pay, you will receive a warning of possible duplicate payment and you will need to select override for those payments to continue.

Businesses – For businesses or those making large payments, the best payment option is the Electronic Federal Tax Payment System, which allows up to five payments per day. Enrollment is required. You can schedule payments up to 365 days in advance and opt-in to receive email notifications about your payments.

Paying by Check, Money Order, or Cashier’s Check

2019 Tax Liability – If you are paying a 2019 income tax liability without an accompanying 2019 tax return and are paying by check, money order, or cashier’s check, you should include Form 1040-V, Payment Voucher with the payment.

If you are paying when filing your 2019 income tax return, do not staple or paperclip the payment to the return.

2020 Estimated Tax Payments – If you are making your 2020 estimated tax payment by check, money order, or cashier’s check, you should include the appropriate Form 1040-ES payment voucher. Indicate on the check memo line that this is a 2020 estimated tax payment.

Additional Electronic Payment Options

You can pay when filing electronically using tax software online. If you are using a tax preparer, ask the preparer to make the tax payment through an electronic funds withdrawal from a bank account.
You can choose to pay with a credit card, debit card, or digital wallet option through a payment processor. Processing fees apply. No part of the card service fee goes to the IRS.
The IRS2Go app provides mobile-friendly payment options, including Direct Pay and Payment Provider payments on mobile devices.
Individuals and businesses preferring to pay in cash can do so at a participating retail store. Go to IRS.gov/paywithcash for instructions.

The more secure and quick way to send a payment to the IRS is through an electronic payment option. Choosing to pay electronically also supports social distancing and speeds the processing of tax returns, refunds, and payments.

Closing Notes

Remember the tax filing deadline for 2020 as well as the payment deadline for taxes owed is next Wednesday, July 15.

If you need more time to prepare and file your federal tax return, you can apply for an extension of time to file until October 15, 2020. To get an extension, you must estimate your tax liability on Form 4868 and pay any amount due.

Contact your local tax professional if you need assistance with your 2019 tax filing or 2020 estimated payments.

Stay safe. Stay well. Stay home.