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There is a more convenient way to pay:
 Your
income tax bill for your Form 1040;
Any
tax due when you file for an automatic extension of time
to file your return; and
Your
estimated tax.
Individuals can make these payments
24 hours a day, seven days a week, using certain types
of credit cards.
No matter how you file your income tax return — by
mailing a paper copy or by computer — you can charge
your taxes by making a phone call or by using a website.
Two
companies, Official Payments Corporation (1-800-2PAYTAX, www.officialpayments.com)
and Link2Gov Corporation (1-888-PAY-1040, www.pay1040.com),
are authorized to accept credit card charges from both
electronic and paper filers. The companies have their own
fee schedules and provide both telephone and Internet payment
services.
You may use these companies to charge taxes
to an American Express, Discover Card or MasterCard account.
Official Payments Corporation also accepts VISA cards.
Even
partial payments may be made, although there is a limit
of two payments per type of tax (or per quarter for estimated
tax). If you file early, you still can wait until April
to make the credit card charge.
Taxpayers also have the option
of making credit card payments for the balance due on
Form 1040, 1040A, or 1040EZ through tax software or
through professional preparers using certain types of tax
software. Some tax preparation software provides combined
electronic filing and electronic payment for those who want
to pay taxes with a credit card. But some tax software may
not allow partial payments.
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You can e-file (or mail a paper return) and
pay the following types of taxes by credit card over the
phone or by using the Internet:
Current
and past due Form 1040 series balance due;
Form
4868 (automatic extension);
Form
1040-ES (estimated tax); and
Form
1040 advanced payment of a determined deficiency.
For any credit card payments, the authorization
date of the credit card charge is considered the payment
date for determining whether the payment was
timely. Credit card payments generally cannot be cancelled.
One advantage of using the credit card method,
aside from the obvious one of being able to delay paying
your tax liability, is that if you participate in any credit
card incentive program, such as airline mileage, you will
earn points by charging your taxes. A
disadvantage is the convenience fee charged by the service
providers. This nondeductible fee is in addition to any
interest your credit card issuer will charge. Taxpayers
are informed of the convenience fee amount before the payment
is authorized.
Taxpayers can call the credit card issuer
or the credit card payment service provider's customer service
number to report problems. The customer service number is 1-877-754-4413 for
Official Payments Corporation and 1-888-658-5465 for
Link2Gov Corporation.
Payments to IRS under active installment agreements
also may be made by credit card. Some states accept credit
card payments of state taxes. The federal and state payments
are not combined. |
