How Do I Pay My Business Income Taxes?

Making Business Tax Payments
Making Business Tax Payments. YinYang/Getty Images

Before You Pay Your Business Taxes

You have finished your business tax return and you are ready to send it in and pay your taxes. But first, there are a couple of things you need to know: 

  • Keep an eye on the due date. We all know that taxes are due on April 15, right? Well, not necessarily. IRS tax due dates change every year, due to holidays and weekends. Check this article for the due dates for the tax return you are filing for the current tax year. 

How Do I Pay My Business Income Taxes?

Here is information about how to pay your business income tax, including estimated taxes and taxes payable with your application for extension.

 To pay your federal income tax bill for your business taxes, you have several options:

Using a Credit or Debit Card

You can pay by credit or debit card through one of the service providers listed by the IRS. These service providers charge a fee for transmitting tax payments. The two service providers listed by the IRS are:

  • Official Payments Corporation at 1-800-2PAYTAX (1-800-272-9829) or visit the Official Payments Web site.
  • Link2Gov at 1-888-PAY1040 (1-888-729-1040) or visit the Pay1040.com Web site.

Payments may be transmitted by credit card/debit card for Form 1040 (including your Schedule C for your self-employed income) and you may also transmit payments in this manner when you file an application for extension on Form 4868.

The credit/debit card payment option is not applicable for payments for partnership tax returns on Form 1065, corporate tax returns on Form 1120, or s-corporation tax returns on Form 1120S.

Using the IRS Electronic Federal Tax Payment System (EFTPS)

You can use the Electronic Federal Tax Payment System (EFTPS) at https://www.eftps.gov/eftps/ to pay all federal tax payments.

You will first need to enroll in the system.

Using Electronic Funds Transfer

You can pay your business taxes through electronic funds transfer in one of two ways:

  • Through your tax preparer
  • By using tax preparation software such as TaxCut or TurboTax

Check the free filing options for filing with software.

Mailing Your Tax Payment

You can mail your tax payment along with return directly to the IRS, and you can use this option if you are paying at the same time as you are filing for an extension on Form 4868 or Form 7004.

If you are filing your taxes using Form 1040, you will need to complete and attach the payment voucher, Form 1040-V, to your payment. If you are mailing in your payment, be sure to address it to U.S. Treasury (or United States Treasury), and include the business Tax ID Number or your Social Security Number on the check.

Can't Pay Your Taxes?

If you are not able to pay all of your tax bill, you have several options. You can pay with an installment plan or you may qualify for an offer in compromise. See this article by William Perez, tax planning expert, for more information about tax payment options.