Tax season can be overwhelming, and we understand how important it is to ensure your IRS payments are set up accurately. We are here to walk you through the process, providing helpful tips to make managing your payments easier and more efficient!  To read the full IRS policy on estimated taxes, click here.

Quarterly Deadline Chart

All payments should be made from your personal bank account, not your business account. This is because your S Corp business is a flow-through entity, meaning all of the profits pass through to you personally. If you need to use business funds for the payment, please transfer the amount from your business account to your personal account first. We'll categorize it as a ‘shareholder distribution' in your books.

Estimated Payment Instructions:

1. Make your Federal estimated payment here
2. Reason for Payment: Select “Estimated Tax”
3. Apply Payment to “1040ES (for 1040, 1040A, 1040EZ)" (this will auto populate)
4. Tax period for Payment: Select the applicable tax year and click “Continue”. A window will appear to verify your selection; click “Continue” again.
5. Tax Year for Verification: Enter the last tax return year the IRS has on file. Note: This is not the payment year. If you recently filed your tax return, use the previous tax year, as the IRS may not have processed the latest one yet. 
6. Enter your filing status for that tax year
7. Enter your name, social security number, date of birth, and address that match the tax year you selected for verification
8. Check the box for “I accept the Privacy Act and Paperwork Reduction Act.” then select “Continue”
9. Enter your payment amount and payment date
10. Enter your bank information and indicate type of account
11. Check the box for “I would like to receive email confirmation notification and agree to the Email Terms of Service.” then enter your email address and select “Continue”
12. Review that the information is accurate then select “Submit”  Important: Take a screenshot of the entire confirmation page before closing the window. This is your proof of payment.
13. Final Step: From the Quarterly estimates section of your Collective account
    1. Select ‘Record payment’
    2. Enter the tax type, amount, payment date, quarter, and tax year
    3. Upload your payment receipt

Below is a redacted version of the document we would like to receive:

IRS Online Account and Reduced Identity Verifications

To avoid verifying your identity every time you make a payment, you can set up an IRS Online Account.

• Once your account is created and your identity is verified, future payments are much smoother.
• You’ll be able to view your payment history, balance, and other tax records in one place.
• This does not replace choosing the correct payment type (Estimated Tax 1040-ES) and year, but it reduces repeat verification steps.

You can learn how to set up your IRS Online Account here.

Additional Information

• Please keep a record of your ‘Confirmation Number’. It will be required to track your payment in the event the IRS loses record of it

• Made a mistake? Call the IRS as soon as you notice, provide them with your Confirmation Number, and notify them of the changes that need to be made

You’re now ready to handle your estimated tax payments with confidence. If you get stuck or have questions, send us a message through the Message Center in the Dashboard. One of our team members will get back to you with the support you need.

Please Note: If you have any questions or concerns using Direct Pay, your best point of contact is the IRS. Collective is unable to advise on this matter. You will need to connect with the IRS.  

Disclaimer: The information contained in this document is provided for informational purposes only and should not be construed as legal, financial, or tax advice. It is not intended to be a substitute for obtaining legal, accounting, or other financial advice from an appropriate and/or licensed  adviser, or for the purpose of avoiding U.S. Federal, state or local tax payments and penalties.