Do You Owe Tax? Here Are Your Payment Options

Instruction Year
2023

Payments through your Tax Software

Direct Debit payment with the income tax return

A Direct Debit is a tax payment electronically withdrawn from your bank account through the tax software used to electronically file individual income or corporation income tax returns. You will need to enter your bank routing number and your bank account number.

Note: You receive credit for making the payment on the date you indicate the Department should withdraw it from your bank account. This may be the date you send it, or a date in the future if you request the payment to be warehoused for withdrawal at a later date. Please allow a week after the withdrawal date for your bank to post it to your account.

Why Direct Debit through your tax software?

(Check with your software vendor for the features that are provided.)

  • You control the date when the payment is withdrawn from your bank account.
  • You may pay the entire amount or a portion of the balance due.
  • You choose whether the payment is withdrawn from your checking or savings account.

Need to cancel a Direct Debit payment made through your tax software?

  • Email the Department's Payment Processing team
    • Include this information in your email:
          1. Taxpayer name
          2. Payment amount
          3. Scheduled pay date
          4. Taxpayer's daytime phone number
    • PAYMENT PROCESSING will return a cancel confirmation email
       

Payments through GovConnectIowa

  • Visit govconnect.iowa.gov
  • Using the Quick Pay option and selecting Make a Return Payment without setting up a GovConnectIowa logon will not provide an option to view history of payments made.
  • Create a logon to take full advantage of GovConnectIowa including viewing up-to-date balance, return status, and payment history.

Note: If paying by credit/debit card, a service fee will be charged by the credit card processing vendor. This service fee is retained by the vendor and is not revenue to the Iowa Department of Revenue.

Need to cancel a Direct Debit payment made through GovConnectIowa?

For more information, visit GovConnectIowa Help.
 

Other Payment Information

Need to change the timing of a payment or update bank account information?

We cannot make these changes for you, you must cancel the payment (see above) and resubmit a payment in one of the following ways:

  • Through your tax software
  • Pay through our website using govconnect.iowa.gov
  • Mail us a check or money order

Payments by Check or Money Order...

Mail a check or money order with an IA 1040V Payment Voucher payable to: Iowa Department of Revenue. Payments must be at least $1. Write the type of tax being paid and the tax year being paid on the check or money order. The address for mailing is on the IA 1040V Payment Voucher.

Payment Plans

Pay as much as you can, and you will be billed for the balance due. You can make payments prior to receiving a bill from the Department.

Note: You must have received a bill from the Department before you can set up a formal payment plan.

Iowa does not have a formal payment plan option prior to receiving a bill from the Department. However, if you are unable to pay your Iowa tax liability in full, file the return and pay what you can by the due date. If you do not file your return by the due date, and at least 90% of the correct tax is not paid, you owe an additional 5% late penalty on the unpaid tax. By filing the return on time, even if at least 90% of the correct tax due isn’t paid, you only owe an additional 5% late penalty on the unpaid tax.

You may pay online through govconnect.iowa.gov.

If paying by check or money order, mail a check or money order with an IA 1040V Payment Voucher payable to Iowa Department of Revenue. Write the type of tax being paid and the tax year being paid on the check or money order. Do not send in any payment of less than one dollar. The mailing address is on the voucher.

You will be billed for the balance after your return is processed, including any penalty or interest that may be due. We encourage you to make payment prior to receiving a bill in order to reduce the interest amount due. Interest will accrue on the first of each month until the balance is paid. 
Questions about payment plans? tax.iowa.gov/pay-delinquent-tax


Source URL: https://tax.iowa.gov/expanded-instructions/do-you-owe-tax-here-are-your-payment-options-2023