PayPal is a type of financial service that facilitates transferring money over the Internet between people who have PayPal accounts. PayPal accounts can be used to shop on the Internet or to transfer money between friends and family using an e-mail address rather than your banking information. If you have money stored in your PayPal account, you also can use PayPal to pay the IRS .
Apply for a PayPal Debit MasterCard (see References). Log in to your PayPal account and click the "Products & Services" tab, select "View All PayPal Products" and click the link for "PayPal Debit MasterCard." Select the "Apply Now" button and follow the prompts to apply for a PayPal Debit MasterCard.
Navigate to an e-pay company that is accepted by the IRS. Official Payments Corporation, Link2Gov Corporation and RBS WorldPay, Inc (see Resources). are the three companies from which the IRS accepts electronic payments. Each company charges a convenience fee of $3.89 or $3.95 per transaction for debit card payments.
Complete the e-pay transaction using your PayPal Debit MasterCard. You must submit information regarding whether you are paying personal or business taxes, the type of tax form you used--such as a 1040 or 1065--and the tax year you wish to pay. You must also supply your personal information and your billing information. After you have submitted your information, review it and submit your payment.
It may take up to one month to receive your PayPal Debit MasterCard after you have completed the application so be sure to apply for your debit card with enough time to receive it prior to the date on which you must pay your taxes to the IRS.
- PayPal: About Us
- PayPal: Debit MasterCard
- IRS.gov: Pay Taxes by Credit or Debit Card
- PayPal. “From Everyday Purchases to Running a Business—We’ve Got an App for You.” Accessed Aug. 3, 2020.
- PayPal. “PayPal Transaction Volume Doubles to $2 Billion.” Accessed Aug. 3, 2020.
- PayPal. “Where Can I Use Paypal With Google Pay?” Accessed Aug. 3, 2020.
- PayPal. “Explore Our Credit Cards, Debit Cards, Prepaid Cards and Paypal Credit.” Accessed Aug. 3, 2020.
- PayPal. “PayPal Fees Are Always Fair.” Accessed Aug. 3, 2020.
- It may take up to one month to receive your PayPal Debit MasterCard after you have completed the application so be sure to apply for your debit card with enough time to receive it prior to the date on which you must pay your taxes to the IRS.
Hal Bartle has been writing professionally since 2009. He has been published on various websites. He holds a Bachelor of Arts in political science from Saint Joseph's University and a Juris Doctor from Duquesne University School of Law.