The free payment methods all assume a US bank account. If you do not have one, your options narrow to two — and both cost money.

By Visa & Money Desk · · 3 min read

Filing from abroad is the easy part. Paying is where people get stuck, because the IRS's free methods assume something many filers abroad do not have: a US bank account.

What needs a US bank account

IRS Direct Pay and payment through your IRS Online Account both draw from a bank account — and foreign bank accounts are not accepted. Both are free. Both are unavailable to you without US banking.

EFTPS is referenced by the IRS as a cheaper alternative to wires, but enrolment and ACH debit generally presuppose a US account too. The IRS publication on international payments does not list it. Treat it as needing a US account.

What does not: international wire transfer

This is the main route for someone with no US banking.

How to do it:

  1. Complete the Same-Day Taxpayer Payment Worksheet
  2. Take it to your bank
  3. Your bank sends the wire using:
Field Value
IRS routing number (RTN/ABA) 091036164 (US TREAS SINGLE TX)
IRS account number (optional) 20092900IRS
Tax type code See the IRS foreign electronic payments page for your form
Tax period The year you are paying for

Your foreign bank must have a banking relationship with a US bank — it need not be an affiliate. As the IRS puts it, "small local banks may not be able to affect an international wire transfer but most large banks can." Check before you rely on it.

Get the tax type code right. It tells the IRS which form and which liability the money belongs to. A wire without it can sit unapplied.

The other route: debit or credit card

Card payments go through third-party processors. A US processor is required, and the cards accepted are broad enough that most international cards work.

Current fees:

Processor Debit Credit Commercial card
Pay1040 $2.15 1.75% (min $2.50) 2.89% (min $2.50)
ACI Payments $2.10 1.85% (min $2.50) 2.95% (min $2.50)

Pay1040 accepts Visa, Mastercard, Discover, American Express, Diners Club International, China Union Pay and JCB. ACI accepts Visa, Mastercard, American Express, STAR, Pulse and NYCE.

Watch two things: the percentage fee on a credit card makes this expensive on a large liability, and your card issuer's foreign transaction and currency conversion charges sit on top of the processor fee.

For a small balance, a debit card at $2.10 to $2.15 flat is usually the cheapest and simplest option available from abroad. For a large one, a wire is normally cheaper despite the bank fees.

Pay early

The IRS advises international taxpayers to pay early so the payment arrives on time. A wire routed through correspondent banks can take several working days, and the payment date that counts for penalty purposes is when the IRS receives it, not when you instructed your bank.

If you are near the deadline, the card route is same-day and the wire is not.

The deadline is 15 April regardless

Worth repeating because it is the most expensive misunderstanding in this area. US citizens abroad get an automatic two-month extension to file, to 15 June. Interest still accrues from 15 April.

An extension of time to file is never an extension of time to pay.

Frequently asked questions

Can I pay in my local currency?
No. Payment must be in US dollars. Conversion happens at your end, at your bank's or card issuer's rate.
Can someone in the US pay on my behalf?
Yes, provided the payment is correctly identified with your taxpayer identification number, tax form and period. Get the reference right or it will not be applied to your account.
What if I cannot pay in full?
File on time anyway. The failure-to-file penalty is far heavier than failure-to-pay. Payment plans are available.
Is there a fee for a wire?
Not from the IRS. Your bank will charge one.

Sources