Overview
The IRS provides three primary electronic payment options for U.S. taxpayers: Direct Pay, the Online Payment Agreement (OPA), and the Electronic Federal Tax Payment System (EFTPS). These tools are free, designed to reduce paperwork and missed deadlines, and help both individuals and businesses meet federal tax obligations electronically. Use the right tool for your situation—one-time balances, long-term installment plans, or recurring business deposits—to avoid fees, penalties, and processing delays.
Quick at-a-glance guide
- Direct Pay: Best for individuals who want to make one-time payments directly from a bank account without fees.
- Online Payment Agreement (OPA): Use this when you owe a balance you can’t pay in full and need an IRS installment plan.
- EFTPS: Designed for businesses and taxpayers who make regular or scheduled federal tax deposits (payroll, estimated taxes, excise taxes).
Why use IRS electronic tools
Electronic payments are faster and more reliable than checks. You get an immediate confirmation number, can typically schedule payments up to 365 days in advance, and reduce the risk of lost mail or misapplied payments. Always use the official sites (irs.gov and eftps.gov) to avoid scams—do not follow links from suspicious emails. According to the IRS, these online services are the recommended, secure options for making federal tax payments (see IRS payment pages).
IRS Direct Pay — best for one-time payments
What it does
IRS Direct Pay lets individuals and some organizations pay federal tax liabilities directly from a checking or savings account without transaction fees. It’s intended for one-time payments such as a balance due with your return, estimated tax payments, or payments with a tax extension.
How to use it (step-by-step)
- Go to the IRS Direct Pay page: https://www.irs.gov/payments/direct-pay
- Select payment reason (balance due, extension, estimated tax, etc.).
- Enter taxpayer information: name, SSN/ITIN, filing status (if required), and tax year.
- Enter bank routing and account numbers and schedule a payment date.
- Submit and save the confirmation number and payment receipt.
Who should use it
- Individual taxpayers paying a bill in full.
- Taxpayers who want a fee-free bank withdrawal option.
Tips and common mistakes
- Schedule payments at least a few days before a deadline to allow bank processing.
- Double-check bank routing and account numbers to avoid returned payments.
- Keep the confirmation number—it’s proof of payment.
- Direct Pay generally cannot be used to make monthly payments for an existing Online Payment Agreement; follow the OPA instructions to service an installment plan.
Related FinHelp articles: see our Direct Pay glossary entry: https://finhelp.io/glossary/direct-pay/ and How to make a tax payment to the IRS: https://finhelp.io/glossary/how-to-make-a-tax-payment-to-the-irs/
Online Payment Agreement (OPA) — best for paying a tax debt over time
What it does
The Online Payment Agreement tool lets eligible taxpayers request an installment agreement with the IRS to pay an existing balance over time. The IRS calculates required monthly payments, adds interest and penalties to the unpaid balance, and posts the agreement once approved.
Who is eligible
Eligibility requirements change, but common conditions include filing required returns and owing an amount within the IRS’s online limits for automatic setup. If you’re not eligible online, you can still request an agreement by phone or by submitting Form 9465 (Installment Agreement Request). For current eligibility rules and limits, review the IRS Payment Plans page: https://www.irs.gov/payments/payment-plans-installment-agreements
How to set up an OPA (practical steps)
- Confirm you have filed all required tax returns.
- Visit the IRS Online Payment Agreement tool and sign in or continue as directed.
- Provide taxpayer ID (SSN/ITIN/EIN), prior-year adjusted gross income (AGI) if prompted, and payment preferences (direct debit or other methods).
- Choose proposed monthly payment amount and length of plan; the IRS will show estimated interest and penalties.
- Review and accept the agreement; print or save confirmation.
Tips and pitfalls
- Consider choosing direct debit to lower risk of missed payments and to often reduce setup fees.
- Interest and penalties still accrue while on an installment plan; paying extra when possible reduces total cost.
- Missing payments can default the agreement; contact the IRS immediately if you have trouble paying.
Alternatives
If you can’t qualify for an OPA or need different relief, look into an Offer in Compromise or temporary hardship status. Consult the IRS site or a tax professional for options.
Related FinHelp articles: Payment plans overview: https://finhelp.io/glossary/irs-online-payment-options/ and What are the different ways I can pay my IRS taxes?: https://finhelp.io/glossary/what-are-the-different-ways-i-can-pay-my-irs-taxes/
EFTPS — best for recurring deposits and business payments
What it does
EFTPS (Electronic Federal Tax Payment System) is a Treasury-run, free system for scheduling and sending federal tax deposits online or by phone. It’s the standard choice for payroll tax deposits, corporate tax deposits, excise taxes, and individuals who make frequent estimated payments.
Enrollment and use
- Enroll at the official EFTPS site: https://www.eftps.gov/eftps/
- Enrollment requires identification information and a bank account; new enrollments may take several business days to receive a PIN by mail.
- Once enrolled, schedule payments up to 365 days in advance, online or by phone.
- Save confirmation numbers for recordkeeping.
Who should use EFTPS
- Employers and payroll administrators who deposit payroll taxes.
- Businesses with regular federal tax liabilities.
- Individuals who prefer scheduled or recurring payments for estimated taxes.
Practical tips
- Enroll well before your first due date; the initial setup can take several days.
- Use the same business name and tax ID format as the IRS records to avoid enrollment delays.
- EFTPS is free—don’t pay a third-party processor when EFTPS will handle federal deposits at no charge.
Related FinHelp article: Electronic Federal Tax Payment System (EFTPS): https://finhelp.io/glossary/electronic-federal-tax-payment-system-eftps/
Choosing between Direct Pay, OPA, and EFTPS
- Owe a one-time balance and want no fees: use Direct Pay.
- Owe a balance but can’t pay now: apply for an Online Payment Agreement (OPA).
- Run a business or have recurring deposits: enroll in EFTPS.
Common FAQs and real-world tips
Q: Can I pay an installment agreement with Direct Pay?
A: Generally no—OPA payments must be made according to the agreement terms. Follow the OPA’s payment instructions; the IRS will show accepted payment methods when you set up the plan.
Q: Are these services free?
A: Yes—IRS Direct Pay, the Online Payment Agreement tool, and EFTPS are free to use. Third-party processors charge fees for credit/debit card payments; use those only if you need the specific card processing features.
Q: How far in advance can I schedule a payment?
A: Most IRS electronic tools allow scheduling up to 365 days in advance, though rules can vary by payment type.
Q: What records should I keep?
A: Save confirmation numbers, payment receipts, bank statements showing withdrawals, and any IRS correspondence. These are critical if a payment is disputed or misapplied.
Security and scam warnings
Always access IRS services by typing the official URL into your browser or using our linked FinHelp guides. The IRS will not initiate contact asking for sensitive information via email. If you receive suspicious emails claiming to be from the IRS about payments, don’t click links—report them and go directly to irs.gov.
Useful official resources
- IRS Direct Pay: https://www.irs.gov/payments/direct-pay
- IRS Payment Plans (Online Payment Agreement): https://www.irs.gov/payments/payment-plans-installment-agreements
- EFTPS: https://www.eftps.gov/eftps/
FinHelp internal resources
- Direct Pay glossary: https://finhelp.io/glossary/direct-pay/
- EFTPS glossary: https://finhelp.io/glossary/electronic-federal-tax-payment-system-eftps/
- How to make a tax payment to the IRS: https://finhelp.io/glossary/how-to-make-a-tax-payment-to-the-irs/
- IRS Online Payment Options: https://finhelp.io/glossary/irs-online-payment-options/
Conclusion
Choose the IRS electronic tool that matches your need: Direct Pay for fee-free one-time withdrawals, an Online Payment Agreement to spread a tax debt over time, or EFTPS for scheduled business deposits and frequent estimated payments. Use official IRS sites, keep confirmation records, and contact the IRS or a tax professional if you’re unsure which option fits your situation.
Sources
- IRS — Direct Pay: https://www.irs.gov/payments/direct-pay
- IRS — Payment Plans/Online Payment Agreement: https://www.irs.gov/payments/payment-plans-installment-agreements
- EFTPS official site: https://www.eftps.gov/eftps/
(Information current as of 2025; check IRS pages above for the latest eligibility rules, fees, and procedural updates.)