IRS now offers the option to Pay Your Taxes in Cash!
The IRS announced a new payment option for individual taxpayers who need to pay their taxes with cash. In partnership with ACI Worldwide’s OfficialPayments.com and the PayNearMe Company, individuals can now make payments at over 7,000 7-Eleven stores nationwide without needing a bank account or credit card.
Individuals wishing to take advantage of this payment option should visit the IRS.gov payments page, select the Cash option in the Other Ways You Can Pay section and follow the instructions.
Here are a few things to keep in mind when using this feature:
• Taxpayers will receive an email from OfficialPayments.com confirming their information. This may take 2–3 days.
• Once the IRS has verified the information, PayNearMe sends the taxpayer an email with a link to the payment code and instructions.
• Individuals may print the payment code provided or send it to their smart phone, along with a list of the closest 7-Eleven stores.
• The retail store provides a receipt after accepting the cash, and the payment usually posts to the taxpayer’s account within two business days.
• There is a $1,000 payment limit per day and a $3.99 fee per payment.
Because PayNearMe involves a three-step process, the IRS urges taxpayers choosing this option to start the process well ahead of the tax deadline to avoid interest and penalty charges.
If you owe taxes, here are a few additional tips and options you’ll want to keep in mind:
• Pay your taxes in full. This will ensure that you avoid interest and potential penalties for late payments.
• The safest and easiest way to pay your taxes is through the IRS Direct Pay online option.
• If you owe more tax than you can pay, you may qualify for extra time (up to 120 days) to pay in full.
• An offer in compromise may allow you to settle your tax debt for less than the amount due. Certain restrictions apply, but it’s worth checking out if paying your tax bill in full could cause financial hardship.
• Employees can avoid a tax bill by having more taxes withheld from their pay. To withhold more taxes, you’ll need to file a new Form W-4 with your employer.