Electronic Funds Withdrawal (EFW)
Payment Timeline

Electronic Funds Withdrawal (EFW) is the easiest option available for paying federal taxes when filing your return with TaxZerone. You can authorize the IRS to withdraw one or more payments directly from your given bank account.

If you are not e-filing, or if you prefer to file electronically but pay your taxes separately, there are other payment options available.

How to make an electronic funds withdrawal payment?

• To make an EFW payment, file your federal tax return using TaxZerone and choose the EFW option to send the payment along with your filing.
• Once you choose EFW, a payment record will pop up where you can enter your payment information.

Features and Benefits of Electronic Funds Withdrawal (EFW)

Electronic Funds Withdrawal makes paying your federal taxes simple. Here’s how it helps:

• Easy and convenient: E-filing makes it easy and convenient for individuals and businesses to file and pay their taxes in a single step.
• No IRS fees: EFW is free to use. You should check with your bank because they may charge their own fees.
• No paper vouchers needed: Paying electronically means there’s no need to mail payment vouchers.
• Safe and secure: Your bank details are used only to process the tax payments you authorize and are not shared for any other purpose.
• Protected information: Bank account details are securely safeguarded and disclosed only to complete approved payment transactions.

Payment Scheduling

• Most individual and business payments can be scheduled up to the tax return due date.
• After the due date, the payment date must be the same day the return is transmitted or within the five days prior.

Estimated Tax Payments

• Up to four quarterly Form 1040-ES payments can also be included with an e-filed individual return, depending on the tax year.
• A separate payment record is required for each (business or individual) estimated payment.
• You may use the same bank account or different accounts for each payment.

Facts You Should Know About Electronic Funds Withdrawal (EFW)

• When you choose EFW, you authorize the U.S. Department of the Treasury (through its financial agent) to withdraw the approved payment amount directly from the bank account you provide.
• On your bank statement, the payment will appear as “IRS USA Tax Payment,” “IRS USA Tax Pymt,” or a similar description, which serves as your proof of payment.
• If your selected payment date falls on a weekend or a federal holiday, the withdrawal will be processed on the next business day. In some cases, your bank may hold the funds and show the transaction as pending.
• The payment is processed as a one-time transaction. The IRS will not make recurring or partial withdrawals.
• Federal Tax Deposits cannot be paid using the EFW option. To make Federal Tax Deposits, refer to the payment instructions provided with the applicable tax form.

Cancellations, Errors, and Questions

• If the Treasury withdraws an incorrect amount from your bank account, it will refund any funds that were taken in error.
• Once your tax return is accepted, payment details cannot be changed. If you need to make changes, you must cancel the payment and use a different payment method.
• To ask questions about your payment or to request a cancellation, you can contact
  IRS e-file Payment Services at 888-353-4537, available 24/7.
• Cancellation requests must be made no later than 11:59 p.m. ET, two business days before the scheduled payment date.
• If your bank returns the payment due to insufficient funds or wrong account information or a closed account. The IRS will send you Letter 4870 with the reason and provide you with an alternate payment option.
• If your bank can’t process the payment, you are responsible for arranging another payment method and for any penalties or interest that may apply.
• If you notice an error in the amount withdrawn, contact your financial institution right away.
• If your financial institution releases the funds before the date you agreed to, you should contact them for clarification.