Has anyone paid estimated tax to IRS with a Vanguard or similar brokerage account?

[davej]

IRS only takes credit card or Bank account for payment. Is there a workaround or way to pay them from Vanguard?

In the past I would move funds from Vanguard to a bank account and then pay estimated tax to IRS.

Any new hope for me please?  

[xmasbaby0]

You have not mentioned what specific transactions you are doing with your Vanguard accounts---for many transactions, such as retirement account distributions, etc. you can have Vanguard withhold the estimated tax and send you the rest of the money.  Talk to Vanguard so they can explain to you.

[VolvoGirl · Accepted solution]

You would have to ask Vanguard.  You might be able to pay from a money market fund  or the settlement fund in a regular account (not a IRA, 401K or retirement account).  Why do you want to change from your bank account?  I would keep doing it the same way as before.  You will probably still have to do sales to get the cash to pay the IRS which will be taxable.  

[davej]

paying estimated tax before Jan 15.  I would like to use my Vgard  money market account that I can wire or ACH from and do regularly. 

IRS says only CC or bank.   Vanguard is not a bank.  Anyone have an answer please?

[DoninGA]

@davej If you can write a check from the money market account, then it will have a routing number and an account number just like a check from a standard bank checking account.

[davej]

I found this but need to check if it is real.

Does the IRS accept wire transfers?

To complete a wire transfer you will need the following information: A completed Same-Day Taxpayer Worksheet. IRS account number – 20092900IRS (optional) IRS account RTN/ABA Number – [removed] US TREAS SINGLE TX.Nov 22, 2024

[guywong]

I  know it can be done with both Morgan Stanley and Fidelity Investments. 

Fidelity provides a routing transit number and an account number for IRS and State ACH debit. on its website  The only downside is that there is no Document Locator on the Fidelity monthly statement.  All it shows is DEBIT IRS USATAXPYMT for both balance due and ES taxes paid. 

Both Morgan Stanley and Fidelity provide checks for the CORE account.  The checks contains both the routing transit and account numbers.

[davej]

Great ideas Thank-you all !   I will call Vanguard tomorrow and post their response. 

I do not like the wire idea because of the form the IRS says to use.https://www.irs.gov/payments/same-day-wire-federal-tax-payments    Looks like a good way to get into trouble. On the IRS site it says they are really backed up.

[davej]

Vanguard says the only way is to wire IRS or send a paper check. Can not use numbers off the check. I will look one more time but before I wire.

It may be easier to just move the money to my bank and then to IRS as I have in the past. I was hoping I could make this simpler for the future..... 

Maybe move to fidelity or Schwab😉😉

[guywong]

Sorry to hear about that.  No idea if Schwab allows IRS direct pay.

Here's what the Fidelity website says about both Direct Deposit and Direct ACH Debits.  It specifically states one can lift the routing transit number and the account number from the checks.  This may be limited to non-retirement accounts though.  

Determine Your Routing and Account Numbers

To establish direct deposit, you'll need your Fidelity direct deposit/direct debit routing numbers and account numbersLog In Required.* Your Fidelity account should be classified as a checking account for Automated Clearing House (ACH) purposes. You can use the direct deposit form (PDF) if you want to print the information and provide to a third party.

Routing and Account Numbers

• The Fidelity routing number (also known as the ABA number) is [removed].
• Your Fidelity account number format is determined via one of the following methods.