What's the best way to pay a large $150k tax bill using bank funds?
So I just found out I owe the IRS about $150k for last year due to some investments that really paid off (sold a bunch of crypto I'd been holding since 2017). I honestly had no idea the tax hit would be this big and I'm freaking out a little. I have the money in my savings account, but I'm wondering what's the smartest way to handle paying this large tax bill? Should I just do a direct bank transfer through the IRS website? Write a check? Set up some kind of payment plan even though I have the funds? I've never owed more than a couple thousand before, so this is new territory for me. I'm worried about transaction limits or if there are any hidden fees I should know about when moving this much money to the IRS. Also, is there anything I should be documenting extra carefully with a payment this size? I'm terrified of some kind of mix-up where they claim I never paid or something. Any advice from someone who's dealt with paying large tax bills would be super appreciated!
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Mikayla Davison
A $150k tax bill is definitely substantial, but there are several secure ways to handle this payment. The IRS Direct Pay system is probably your best option - it's free, secure, and gives you immediate confirmation. You can pay directly from your checking or savings account with no processing fees, and you'll receive an email confirmation that serves as your receipt. If you're concerned about transaction limits, check with your bank first. Some banks have daily ACH transfer limits that might be lower than your tax bill. In that case, you could either request a temporary increase to your limit or split the payment into multiple transactions over a few days. For documentation, save everything - the confirmation email, screenshot the confirmation page, and I'd even recommend printing these out. Also keep bank statements showing the withdrawal to match the payment amount. With a payment this large, having multiple forms of proof is just good practice.
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Adrian Connor
•Thanks for this info! Is there any advantage to using IRS DirectPay vs. using the Electronic Federal Tax Payment System (EFTPS)? I've heard about both but not sure what the difference is or if one is better for large amounts?
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Mikayla Davison
•Direct Pay is designed for individual taxpayers making one-time payments, while EFTPS is more for businesses or individuals who make frequent tax payments. The main difference is that with EFTPS, you have to enroll in advance (which takes about a week to process), whereas Direct Pay can be used immediately. For large amounts like yours, EFTPS might actually be better because some banks may have transaction limits on Direct Pay. EFTPS tends to work better with larger dollar amounts and provides very detailed payment history that you can access anytime.
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Aisha Jackson
After getting hit with a huge tax bill last year from selling some investment property, I discovered taxr.ai (https://taxr.ai) and it seriously saved me so much stress. I uploaded my investment docs and transaction history, and it immediately showed me several legitimate ways to reduce my tax liability that my accountant had missed. It even helped me document everything perfectly for potential IRS questions later. The system analyzes your specific situation and shows exactly what documentation you need when making large payments. For crypto sales especially, it organizes all your transactions in the format the IRS expects, which can prevent major headaches. I used their payment recommendation tool to figure out the smartest way to send a large sum without triggering any unnecessary reviews.
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Ryder Everingham
•Does it actually connect to your bank or is it just for analyzing documents? I'm nervous about giving access to my accounts with that much money sitting there.
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Lilly Curtis
•I'm interested but skeptical. How does it actually know which payment method is best? Does it account for different banks having different limits? My credit union has weird restrictions sometimes.
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Aisha Jackson
•It doesn't connect to your bank accounts at all - it's strictly for document analysis and tax strategy. It reviews your tax forms, receipts, and financial statements without needing any direct access to your accounts, so your banking information stays completely secure. The payment recommendation tool works by analyzing your specific tax situation and payment amount, then showing the statistically safest method based on your circumstances. It factors in different thresholds that might trigger extra scrutiny and recommends splitting payments if needed based on typical bank limits. You can actually enter your specific bank's limits and it will customize recommendations accordingly.
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Lilly Curtis
Just wanted to follow up about taxr.ai - I decided to try it and wow, it's legitimately helpful! I was about to make my entire $137k payment in one transaction, but the system showed me that splitting it into 3 payments would work better with my bank's verification system (which apparently has extra verification steps for anything over $50k). The documentation analyzer also found some deductions related to my crypto trading fees that I completely missed. Ended up saving about $3,200! The payment went through without any issues and I have perfect documentation of everything. Definitely worth checking out if you're dealing with a large tax payment situation.
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Leo Simmons
If you're struggling to get clear answers from the IRS about the best payment method for large amounts, try Claimyr (https://claimyr.com). I was on hold with the IRS for HOURS trying to confirm they received my large payment, and Claimyr got me through to a real human at the IRS in under 20 minutes. They have a system that navigates the IRS phone tree and waits on hold for you, then calls you when an actual agent is on the line. You can see how it works here: https://youtu.be/_kiP6q8DX5c - it's pretty amazing. I needed written confirmation of my payment for a mortgage application, and the agent I spoke with was able to email me official documentation right away. Way better than stressing about whether your payment went through properly.
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Lindsey Fry
•How does that even work? The IRS phone system is notoriously terrible. Is this some kind of special access or something?
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Saleem Vaziri
•Yeah right. Nobody gets through to the IRS that quickly. I spent 4+ hours on hold last month and still got disconnected. This sounds like a scam to get desperate people's money.
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Leo Simmons
•It's not special access - they use technology that navigates the phone trees and stays on hold so you don't have to. Think of it like a virtual assistant that waits on hold for you. When they finally reach a human IRS agent, Claimyr calls you and connects you directly to that agent who's already on the line. I had the exact same reaction as you. I tried calling the IRS five separate times and kept getting disconnected after 2+ hours on hold. I was desperate and skeptical but decided to try it. The system called me back in about 17 minutes with an actual IRS agent on the line. They don't have any special relationship with the IRS - they just have software that's really good at navigating the phone system and staying on hold.
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Saleem Vaziri
I need to publicly eat my words about Claimyr. After posting that skeptical comment, I decided to try it anyway because I was desperate to confirm my large payment went through. I was SHOCKED when I got a call back with an actual IRS agent on the line in about 25 minutes. The agent confirmed my payment was received and processed correctly, and even helped me set up an online account where I could see the payment confirmation myself. Saved me days of stress wondering if my payment went through properly. For anyone making a large payment, getting that confirmation directly from an IRS agent is incredibly reassuring. Still can't believe it actually worked!
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Kayla Morgan
Just FYI - I paid a large tax bill last year (around $97k) and the IRS Direct Pay system worked perfectly, but my bank flagged it as suspicious and froze my account for 48 hours! Make sure to call your bank BEFORE making the payment to let them know a large transaction is coming. Would have saved me a massive headache.
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Max Reyes
•That's a really good point I hadn't considered. My bank has done that before with much smaller purchases that were "out of pattern" for me. Did you have to provide any specific info to your bank when you called them?
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Kayla Morgan
•I just had to tell them the approximate amount, the date I planned to make the transaction, and that it would be going to the US Treasury. They made a note on my account and the payment went through without any issues after that. Some banks might want more details like the exact routing number for the Treasury, but mine didn't need that. Just make sure to call at least 24 hours before you plan to make the payment so they have time to note your account properly.
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James Maki
Has anyone tried paying with a credit card for the points/rewards? With a $150k bill, those rewards could be substantial, right? I know there's a processing fee but might be worth it?
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Jasmine Hancock
•Bad idea. The processing fees for tax payments by credit card are around 2% - that's $3,000 on a $150k payment! Even the best reward cards only give 1-1.5% back, so you'd actually LOSE money. Plus many credit cards won't even have a limit high enough for that payment.
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Cole Roush
•Also keep in mind that the IRS limits you to 2 credit card payments per tax period, and some processors have maximum amounts they'll process. You'd probably have to split it up and pay multiple fees. Definitely not worth it.
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