Washington, D.C. (July 23, 2025) – In a letter submitted to the Internal Revenue Service (IRS), the American Institute of CPAs (AICPA) recommended expanded electronic payment options for exempt organizations via the IRS Direct Pay system. The modifications cited by the AICPA are specifically regarding the Direct Pay system’s use for payments associated with Form 990-T, Form 990-PF, Form 4720 and Form 1120-POL.
To improve the Direct Pay system for exempt organizations, the AICPA asks that the IRS modify the Direct Pay system to:
Add Form 990-T and Form 990-PF as options under the “Apply Payment To” dropdown when “Extension” is selected as the “Reason for Payment”
Add Form 990-T and Form 990-PF as options under the “Apply Payment To” dropdown when “Payment on Adjusted or Amended Return” is selected as the “Reason for Payment”
Add Form 4720, and Form 1120-POL, as options under the “Apply Payment To” dropdown when selecting the following reasons for payment: “Balance Due on Return or Notice,” “Extension,” and “Payment on Adjusted or Amended Return”
Update the tax periods for which estimated tax payments can be applied to Form 990-T and 990-PF, to include the current tax year 2025
“Refining the Direct Pay system could further improve accuracy and efficiency for the processing of exempt organization tax payments,” says Scott Klein, Senior Manager, AICPA Tax Policy & Advocacy. “In providing more options and updates, exempt organizations will face less uncertainty and the risk of misapplied payments and processing delays while the IRS will see a decrease in the need for follow-up correspondence.”
About the American Institute of CPAs
The American Institute of CPAs (AICPA) is the world’s largest member association representing the CPA profession, with 397,000 members and a history of serving the public interest since 1887. AICPA members represent many areas of practice, including business and industry, public practice, government, education, and consulting. A founding member of the Association of International Certified Professional Accountants, the AICPA sets ethical standards for the profession, attestation standards, and U.S. auditing standards for private companies, not-for-profit organizations, and federal, state, and local governments. It develops and grades the Uniform CPA Examination, offers specialized credentials, partners across the profession to build future talent, and drives continuing education to advance the vitality, relevance, and quality of the profession.
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Contact: Veronica L. Vera
202-434-9215
Veronica.Vera@aicpa-cima.com