How to Pay Federal Business Taxes Online: Business Tax Account, Direct Pay and EFTPS Compared
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How we wrote this: A summary of the IRS's Payments, Business Tax Account, Direct Pay for businesses and EFTPS pages (linked below), checked October 29, 2026. This is general information, not tax advice. Limits and accepted forms change, so confirm on the IRS page before you pay.
Payroll deposits, a Form 940 balance, a corporate estimated payment: sooner or later every small business has to send money to the IRS. The IRS offers three free ways to pay straight from a business bank account. They overlap, but each has limits that decide which one fits.
The three free bank-account options at a glance
| Business Tax Account | Direct Pay for businesses | EFTPS | |
|---|---|---|---|
| Sign-in | Yes (IRS account) | No sign-in | Enrollment, PIN and internet password |
| Payments per day | Up to 144 scheduled | Up to 5 in 24 hours | (not stated on the IRS page) |
| Size limit | Up to $500 million a day | $10 million per payment | (use for larger payments) |
| Payment types | Most | Common ones | All, including recurring |
| History | Payment history and balance | Look up one payment by confirmation number | 15 months |
| Schedule ahead | Yes | Yes | Up to 365 days |
The IRS Payments page labels the Business Tax Account the preferred route for businesses and points anyone needing recurring payments to EFTPS.
Business Tax Account: the IRS's preferred route
The Business Tax Account is an online account for the business itself. Besides payments it shows the balance owed by year, tax transcripts, IRS notices and letters, and, new this year, a downloadable EIN verification notice (the new CP575) you can use instead of asking for a Letter 147C.
Who can register depends on the business type:
- Sole proprietors need an SSN or ITIN, an EIN, and a Schedule C or Schedule F filing. The IRS notes the account isn't yet available for LLCs that file as sole proprietors on Schedule C or F.
- Partnerships, S corporations and C corporations register through a "Designated Official." For corporations that person must be an officer or managing member, a current W-2 employee for the latest filing year, and authorized to legally bind the business.
- Single-member LLCs that file Form 1120-S or Form 1065 can use it.
Once inside, the Designated Official can add other people as Designated Users, which is useful if a bookkeeper makes the deposits.
Direct Pay for businesses: no account needed
Direct Pay for businesses works without signing in. You enter your EIN and bank details for each payment. Key rules from the IRS page:
- It's available daily from 12 a.m. to 11:45 p.m. Eastern.
- It accepts no more than 5 payments in 24 hours, and a single payment can't exceed $10 million.
- You get a confirmation number for each payment. Save it: you need it, plus your EIN, to look up, change or cancel the payment. You can opt in to a confirmation email.
- You can change or cancel a payment within 2 days of the scheduled payment date.
Direct Pay only takes certain business payment types. The list includes Form 941 and Form 940 (balance due and federal tax deposits), Forms 943, 945, 720, 1042, 1065 and 1120 payments, and civil penalties, generally for the current year or up to 20 years back. Extension payments for the forms that allow them are current-year only. If your form or payment reason isn't on that list, the IRS sends you to the Business Tax Account or EFTPS.
EFTPS: recurring payments and everything else
The Electronic Federal Tax Payment System is a free Treasury service. The IRS says it accepts all payment types and recurring payments, which makes it the fallback when the other two don't fit, and the route for payments above Direct Pay's $10 million cap (along with same-day wire).
What the IRS lists for EFTPS:
- Schedule payments up to 365 days in advance, and change or cancel scheduled payments.
- Pay income, employment, estimated and excise taxes, 24/7.
- Email notifications and 15 months of payment history.
- Tax professionals can pay for multiple clients under one login.
Two cautions. Enrollment can take up to five business days, so don't wait until the week a payroll deposit is due. And the IRS now says individual taxpayers can no longer create new EFTPS accounts; individuals are sent to their IRS online account or Direct Pay instead (existing users can keep using EFTPS for now). That change is about personal accounts; the IRS still points businesses to EFTPS for recurring payments.
Which one should you use?
- You just need to make a 941 deposit or pay a balance, occasionally: Direct Pay is quickest; no account to set up.
- You want to see your balance, notices and payment history in one place: set up the Business Tax Account, if your business type qualifies.
- You want deposits scheduled weeks ahead, recurring payments, or a form Direct Pay doesn't accept: enroll in EFTPS early.
If you're self-employed and paying quarterly estimates on your personal Form 1040, the IRS steers you to your individual online account or Direct Pay for individuals instead; see our guide to estimated quarterly taxes. Employers making payroll deposits can pair this with our Form 941 basics and Form 940 and FUTA guides.
Other ways to pay, and if you can't pay
The IRS Payments page also lists debit or credit card and digital wallet payments (fees apply), same-day wire (fees may apply), check or money order, and cash. Businesses that can't pay in full can call the number on their notice or 800-829-4933 (7 a.m. to 7 p.m. local time) about a payment plan.
Watch for fake payment sites
All three official tools live on irs.gov, directpay.irs.gov and eftps.gov. The IRS links its own warning about scams and phishing sites posing as the IRS. Type the address yourself rather than following a link in an email or text. More: government impersonation scams.