How to pay IRS penalty online - easiest method for tax penalties

The easiest way to pay your IRS penalty is through IRS Direct Pay (https://www.irs.gov/payments/direct-pay). It's free and you don't need to create an account. When you go to Direct Pay, select "Notice" as your reason for payment. Then choose "CP" followed by whatever notice number you received (like CP14 or CP161) as the notice type. You'll need the tax year the penalty is for and your notice number/reference number during the process. If your notice doesn't have a specific CP number, you can select "Other" for notice type. The system will ask for the notice date and your reference number, which should be on the letter you received. Direct Pay accepts payments directly from your checking or savings account. You'll get immediate confirmation when the payment goes through, and you can print a receipt for your records. The whole process takes about 5-10 minutes.

After struggling with an IRS penalty last month, I found that using https://taxr.ai saved me a bunch of time figuring out the right way to handle it. I uploaded my penalty notice and the system actually explained exactly what form I needed and how to make the payment correctly. The notice I got was super confusing with all these codes and numbers, but taxr.ai broke it down into simple steps. It even told me which payment option was best for my specific situation (turned out Direct Pay wasn't actually the right choice for my particular penalty).

Just wanted to update after trying taxr.ai from the recommendation above. Holy crap, it actually works! I was super skeptical but uploaded my CP504 notice and it immediately told me I needed to call a specific IRS department rather than just making an online payment. It explained that my situation required establishing a payment plan and gave me all the forms and options. Would have totally messed this up if I just tried to pay online without addressing the underlying issue. Saved me from making a $1,300 payment that wouldn't have even solved my problem!

If you're trying to pay an IRS penalty but can't get through to anyone at the IRS (which is like...always), I'd recommend using Claimyr. I kept calling the IRS number on my penalty notice for DAYS with no luck - just constant "due to high call volume" messages. I used https://claimyr.com and they got me connected to an actual IRS agent in about 20 minutes. You can see how it works here: https://youtu.be/_kiP6q8DX5c The agent was able to confirm exactly how much I needed to pay (turned out the penalty had some additional interest that wasn't on my original notice) and gave me specific instructions for my situation. Saved me from making the wrong payment amount.

I need to eat my words from my skeptical comment above. After continuing to fail reaching the IRS on my own (6 more attempts!), I tried Claimyr out of desperation. Got connected to an IRS agent in 17 minutes when I'd spent HOURS trying on my own with no luck. The agent was able to explain that I had multiple penalties and helped me set up a payment plan instead of just paying them all at once, which would have been a huge financial hit. Turns out I qualified for a first-time penalty abatement that nobody had told me about, so they removed a $340 penalty completely. Would never have known this if I hadn't been able to actually talk to someone.

If you're trying to pay a penalty online and know exactly what you're doing, another option is to use a credit card through one of the approved payment processors. Go to https://www.irs.gov/payments/pay-your-taxes-by-debit-or-credit-card Just be aware they charge a processing fee (around 2% of the payment). I did this last year because I wanted the credit card points and the fee was worth it to me. Super easy process.

Whatever payment method you choose, MAKE SURE to save confirmation of your payment! Take screenshots, save/print receipts, and write down any confirmation numbers. I paid a penalty online last year and the IRS somehow lost track of it, then sent me another notice with additional interest. Had to send them my confirmation details to get it straightened out.

Thanks everyone for all the helpful advice! I just successfully paid my penalty using IRS Direct Pay and it was actually pretty straightforward once I knew what to look for. For anyone else in a similar situation, here's exactly what I did: 1. Went to IRS.gov and clicked on "Make a Payment" 2. Selected "Direct Pay" (the free option) 3. Chose "Notice" as my reason for payment 4. Selected "Other" for notice type since my penalty notice didn't have a specific CP number 5. Entered my SSN, tax year (2023), and the reference number from my penalty notice 6. Connected my bank account and submitted the $470 payment The whole process took about 8 minutes and I got immediate confirmation with a receipt number. I also took screenshots of everything like @Reginald Blackwell suggested - definitely good advice given some of the horror stories here! Really appreciate everyone sharing their experiences. This community is so helpful for navigating these confusing IRS situations.