# Best way to send payments to the IRS



## cescolar (May 31, 2013)

I know that as a resident in a foreign country I have until June 16 to send my 1040.
But if taxes are due and I don't pay them by April 16 (this year) I will have to pay a penalty.

I would like to send an estimated payment by the due date by some electronic means.
How do I do that?


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## Bevdeforges (Nov 16, 2007)

It's not ideal if you don't have a US bank account, but this is what the IRS recommends:
Foreign Electronic Payments
Cheers,
Bev


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## cescolar (May 31, 2013)

Thanks, Bev! As usual real helpful! You and BBCWatcher are really generous with your time answering so many questions! We really appreciate it!

I went to that page and in the bottom I found this other link:
U.S. Citizens and Resident Aliens Abroad - Where and When to File and Pay

There I was pleasently surprised to learn that the automatic 2 month extension that we get also includes an extension for paying! I thought that you still had to pay estimated taxes on April 15(6) anyway! But that is not the case, thankfully!

I do have a US bank account, so now I can just give them the bank info when I file on June 15(6). Problem solved for me.

I will share that I have found that you can do electronic payments at this site:
https://www.eftps.gov/eftps/direct/EftpsHome.page
You can use them instead of having to send paper checks with a 1040-ES form


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## BBCWatcher (Dec 28, 2012)

If you're required to pay estimated taxes then you have to pay quarterly according to the regular Form 1040-ES deadlines. The first estimated tax payment for tax year 2014 is due April 15, 2014.

If (1) you will have a balance due on your 2013 tax return, (2) you live overseas, and (3) you file your tax return with the overseas cover letter, then your balance due payment date is extended by two months to June 15, 2014. That's when payment should be _received_ by the IRS. If you apply for an extension of your filing date until October 15, 2014, that does not extend your balance due deadline.


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## cescolar (May 31, 2013)

BBCWatcher said:


> (3) you file your tax return with the overseas cover letter


What is that? A simple note that you write saying that you live overseas? Isn't that obvioius from your address?

Also, this year's dealine falls on the 16ths, I believe...


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## BBCWatcher (Dec 28, 2012)

See page 4 of IRS Publication 54 for details on the statement you must attach if you want the June 15 -- June 16, 2014, this year, yes -- deadline.


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## cescolar (May 31, 2013)

Thanks! Publication 54 is a gold mine for me! 

But as I thought, I read:_ "Even if you are allowed
an extension, you will have to pay interest
on any tax not paid by the regular due date
of your return."_

So I guess you don't pay a penalty but still have to pay interest, right?
Do you know what percentage interest?


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## BBCWatcher (Dec 28, 2012)

I think you found an error in Publication 54 -- or at least a badly written section. As the IRS makes clear elsewhere, if you qualify for that 2 month extension your deadline for both filing and payment is June 15. (June 16 in 2014.)


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## FFMralph (Dec 22, 2012)

What if you do not have a US bank account?
Any suggestions?


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## BBCWatcher (Dec 28, 2012)

Many banks around the world can issue what are typically called "foreign drafts" or "demand drafts." They are available written in U.S. dollar amounts, and they are drawn on a U.S. bank -- a bank that's a partner of the foreign institution. Those checks work.

It's also relatively inexpensive to pay using a debit card as long as that debit card offers a low foreign exchange rate spread.

The IRS's Web site provides some more information.


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## Bevdeforges (Nov 16, 2007)

Basically you have to pay to transfer funds. Foreign Electronic Payments

But I am told that the various credit card processors will take foreign credit cards: Pay your Taxes by Debit or Credit Card
Of course you pay for the privilege, but it's lots cheaper than a wire transfer!
Cheers,
Bev


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