A corporation filing Form 1120 can pay its balance due using a variety of electronic methods, but it cannot pay the balance due by check. Thus, Form 1120 does not have a payment voucher.
When marking the return for electronic filing, you'll have the option to enter bank information for payment by direct debit.
If the corporate officer doesn't want to include payment information with the return, the corporation can pay online at the Electronic Federal Tax Payment System® website at the U.S. Department of the Treasury:
An alternative to EFTPS is to use the "Same-day wire payment option" through the Federal Tax Collection Service (FTCS). This payment method involves the corporation's bank sending a wire transfer, so additional fees are likely involved. See here for more information.
Paying in installments
If the corporation cannot pay the full amount of tax owed, it can apply for an installment agreement online if all of the following are true:
- It cannot pay the full amount shown on Form 1120 line 35,
- The total amount owed is $25,000 or less, and
- The corporation can pay the liability in full in 24 months.
The corporation completes the Online Payment Agreement Application at the IRS payments website:
Under an installment agreement, the corporation pays what it owes in monthly installments. There are certain conditions that must be met to enter into and maintain an installment agreement, such as paying the liability within 24 months, making all required deposits, and timely filing tax returns during the length of the agreement.
If the installment agreement is accepted, the corporation will be charged a fee and be subject to penalties and interest on the amount of tax not paid by the due date of the return.
Additional Information: