PayPal Can Now Be Used To Pay The IRS

Source: IRS
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Tax season has officially begun, which means millions of US households are preparing to file their taxes by the April 15th deadline.

Income tax payments are the single largest government transaction most households make each year, and many taxpayers count on a tax refund as an important part of their annual budget.

Tax season is a stressful time for taxpayers who struggle to file and pay on time, and for the financially underserved without a means to receive their tax refunds more quickly from the IRS through an electronic transfer.

This year, PayPal is bringing this convenience to tax season by introducing new ways to make your tax filing journey simple and easy.

This year US taxpayers can use a PayPal account to:

  • Pay any taxes owed to the IRS through payUSAtax.com. (Fee applies)
  • Pay income taxes over time with PayPal Credit – enjoy 6 months promotional financing on tax payments of $99 or more when paying through payUSAtax.com. Subject to credit approval. See terms.
  • Receive tax refunds straight into a PayPal account – consumers who have the PayPal Cash Card can get their tax refund deposited straight into PayPal, then use it to shop online, transfer to a bank or access it with the PayPal Cash Card.
  • Pay small business taxes through payUSAtax.com, plus get tax tips from PayPal for planning and managing a business throughout the year.

Accepted Tax Payments

Through the payUSAtax service, individual taxpayers can make secure tax payments for the following federal tax types:

  • Form 1040 Series (all types including current year, prior years, future years, installment agreements, amended returns, Proposed Tax Assessment / CP 2000/CP2501/CP3219A) , Section 965 – Transition Tax, Partner Payment for Bipartisan Budget Act Modification, Prepayment on Bipartisan Budget Act Amended Adjusted Return / Exam Push Out)
  • Form 1040-ES Estimated Taxes
  • Form 4868 Automatic Extension of Time to File
  • Trust Fund Recovery Penalty (including installment agreements)
  • Health Care (Form 1040)
  • Form 5329 Retirement Plans
  • Form 1040X Amended Return

Businesses can make secure payments for their taxes, including:

  • Form 940 Balance Due (all types including current year, prior years, installment agreement, and amended or adjusted returns)
  • Form 941 Balance Due (all types including current year, prior years, installment agreement, and amended or adjusted returns)
  • Form 943 Balance Due (all types including current year, prior years, installment agreements, and amended or adjusted returns)
  • Form 944 Balance Due (all types including current year, prior years, and amended or adjusted returns)
  • Form 945 Balance Due (all types including current year, prior years, installment agreements, and amended or adjusted returns)
  • Form 1041 Balance Due (all types including current year, prior years and future years, Section 965 Transition Tax, Bipartisan Budget Act Amended Adjusted Return Push Out, Partner Payment for Bipartisan Budget Act Modification, Bipartisan Budget Act Exam Push Out, Prepayment on Bipartisan Budget Act Amended Adjusted Return Exam Push Out
  • Form 1065 Balance Due (all types including current year, prior years, and future years, Section 965 Transition Tax, Bipartisan Budget Act Amended Adjusted Return Imputed Underpayment, Bipartisan Budget Act Amended Adjusted Return Push Out, Bipartisan Budget Act Exam Imputed Underpayment, Advance Bipartisan Budget Act Exam Imputed Underpayment, Partner Payment for Bipartisan Budget Act Modification, Bipartisan Budget Act Exam Push Out)
  • Form 2290 Balance Due (all types including current year and prior years)

Canadian users can also pay their CRA taxes with PayPal through PaySimply. Visit paysimply.ca/paypal to learn more.

READ MORE: PayPal Launches Instant Transfer To Bank Solution


What are your thoughts on using PayPal to pay your taxes? Please use the comments section below or head over to our Facebook Group for Small Business Sellers and interact with other small business owners.
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