Electronic Fund Withdrawal, popularly known as ‘Direct Debit’ and ‘EFW’ is an easy and convenient way for paying tax dues to the IRS. Individuals using this service get the funds deducted from their account electronically. It is interesting to learn that taxpayers can choose to pay the tax due upfront by scheduling for a future date. However, when filing for IRS tax forms such as 720 and 2290, the tax due can be paid on the day when the form is e-filed, or, on the actual date of EFW payment when the tax form was successfully transmitted.
Things Required For Making EFW Payments:
- Routing Transit Number - Taxpayers should keep their financial institution’s routing transit number handy, which runs from 01 through 12 or 21 through 32. On the sample check below, the routing number is “250250025”.
- Bank Account Number - Taxpayers should enter the correct bank account number not exceeding the 17 digits limit. The number should be entered from left to right and leave the unused boxes also omitting the hyphens, spaces, and special characters.
- Type of Account & Amount - Taxpayers need to mention the type of account (savings or checking) along with the total amount that is to be deducted from the bank account. Keep in mind that certain financial institutions do not allow EFW from savings account. Therefore, it is advisable to check with the respective bank to avoid any hassles.