How to Pay Taxes Owed on Your Amended Tax Return

After discovering an error on a previously filed tax return, you may need to file Form 1040-X, Amended U.S. Individual Income Tax Return. This form is used to correct items like income, deductions, or credits that were reported incorrectly. Filing this form can result in owing additional tax to the IRS. Submitting Form 1040-X and paying the tax you owe are two distinct processes; filing the amended return does not settle the tax liability, so you must take a separate step to send the payment.

Information Needed to Make Your Payment

Before you pay the additional tax on your Form 1040-X, gather specific information to ensure the payment is processed correctly. You will need the primary taxpayer’s Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN). It is also necessary to identify the specific tax year you are amending and that the payment is for Form 1040-X.

Without this information, your funds could be misapplied to your original return or another tax period. This can lead to the IRS sending you a balance due notice, including penalties and interest, for the unpaid amended amount, while your payment sits unapplied in another account.

Methods for Paying Your Amended Tax Bill

The IRS provides several methods for paying the tax due on an amended return. IRS Direct Pay allows you to make a payment directly from a checking or savings account at no cost. When using this online service, you will select “Amended Return” as the reason for payment and “1040-X” as the tax form, then enter the relevant tax year.

You can also pay using a debit card, credit card, or digital wallet through one of the IRS’s third-party payment processors. These services charge a fee, which varies depending on the processor and the payment method. The payment websites will guide you through the process of providing the required information for the amended return.

For those who prefer to pay by mail, you can send a check or money order with your paper-filed Form 1040-X. The payment should be made out to the “U.S. Treasury.” To avoid processing errors, write the primary SSN or ITIN, the tax year, and “Form 1040-X” on the memo line. If you have already filed the 1040-X, you can mail the payment separately.

Other payment options are available for specific situations. The Electronic Federal Tax Payment System (EFTPS) is a free online service that can be used, though it is primarily for business taxes and individuals who make quarterly estimated payments. If you are already enrolled in EFTPS, you can schedule a payment for your Form 1040-X. Additionally, the IRS offers the ability to pay in cash at one of its retail partners, which requires getting a payment code online and presenting it at a participating store.

Options if You Cannot Pay in Full

If you cannot pay the full amount of tax owed on your amended return immediately, the IRS offers resolution options. A short-term payment plan may grant you up to 180 additional days to pay the liability in full. Interest and penalties will continue to accrue until the balance is paid, but this option can provide temporary relief.

For a longer-term solution, you may qualify for an installment agreement, which allows you to make monthly payments for up to 72 months. To request this, you file Form 9465, Installment Agreement Request, with the IRS. The IRS charges a setup fee for installment agreements, and approval is based on your compliance history and the amount you owe.