TaxAct still hasn't charged me for Federal Yet
I did my taxes through TaxAct and provided my credit card information upon completion. I received notice that my federal return had been accepted. It also said the following:
You have elected to pay the IRS through VPS at a later time
I don't know what this means nor did I choose to pay at a separate time. How can I ensure that my taxes are paid and that I don't get in trouble for this?
Posted May 19, 2022, 5:57 PM UTC
17
It’s possible that you scheduled a payment through TaxAct that will take place in the future. Here’s what TaxAct has to say about VPS:
https://www.taxact.com/support/24248/2020/vps-pre-authorizations
If you determine that you still need to make a payment separately, I would use IRS Direct Pay, which uses direct debit (ACH) from your bank account without a fee, unlike all of the other commercial payment partners which charge a fee.
Payment was due by 4/18, so you should make sure your payment is made ASAP to stop any additional interest and late payment penalty from accruing.
If I possibly scheduled a payment for the future, when should it occur? This is all very confusing to me.
The link sent says the following:
"Pending charges will only be paid if the return is submitted and accepted. "
My return was accepted the same day it was submitted so I don't know why payment would not have gone through.
I printed my instructions and it says:
You have selected to pay the amount you owe by credit card at a later time. To
complete the payment you MUST visit www.payusatax.com/taxact, if you have not
already, to submit your payment information.
This sucks. How do I calculate the interest I owe?
If you still want to pay by credit card go here:
https://www.irs.gov/payments/pay-your-taxes-by-debit-or-credit-card
If you go there, the fees will be a lot lower than the ones charged by any tax software provider.
If you want to avoid fees altogether and just pay directly from your bank account go here:
https://www.irs.gov/payments/direct-pay
REGARDLESS OF WHICH OPTION YOU CHOOSE, YOU DO NOT HAVE TO SET UP AN IRS ACCOUNT.
Don't worry about the interest you owe, the IRS will send you a bill. Just pay the bill by the due date. If it is a small amount, the IRS won't bother billing you.
OK thats very helpful, thank you
At this point you can use any payment processor you want. You don’t have to stick with PayUSATax. https://www.irs.gov/payments has various options. Direct Pay is the simplest if you just want to have it directly debited from your bank account.
You don’t have to worry about calculating the interest. The IRS will send you a bill for it eventually.
Thank you this helps a lot