How do I pay tax due with a Form 990-PF?

All private foundation tax payments, including those for taxes due with Form 990-PF and estimated tax payments, generally must be made electronically. The preferred method is the Electronic Federal Tax Payment System (EFTPS), administered by the U.S. Department of the Treasury. EFTPS is a secure and widely used system that enables businesses, individuals, and other legal entities to make federal tax payments without incurring fees.

Private foundations can use EFTPS for a variety of taxes, including employment taxes, excise taxes, unrelated business income taxes, and quarterly estimated payments. Payments cannot typically be made by mailing a physical check to the IRS. Before making any payments, a private foundation must enroll in EFTPS using its Employer Identification Number (EIN). This enrollment process can take up to five business days, as a PIN is sent via mail. Once the setup is complete, the foundation will receive login credentials, which should be securely saved for future use, as they are required each time the system is accessed.

Starting in 2024, EFTPS will incorporate ID.me for identity verification. ID.me functions as a two-factor authentication system, adding an additional layer of security to ensure that only authorized users can access and manage tax payments.

It's worth noting that if the IRS identifies an outstanding balance after a payment is due, they will notify the foundation by mail. In this scenario, the IRS does accept physical checks but only in response to an official notice of deficiency.

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