Paying Your Taxes with a Credit Card

Paying your taxes with your credit card could very well void out any sort of credit card reward scheme you may of had in mind. The IRS is authorized to collect tax payments via credit cards as per The Taxpayer Relief Act of 1997. This authorizes the Treasury to accept these payments for federal taxes but prohibits the IRS from paying a fee or consideration to service providers for processing these transactions. The fees for these transactions currently range from a flat fee of $2.95 (rather modest) to a whopping 3.93%!

Usually, taxpayers can make a payment through service providers using an American Express Card, Discover Card, MasterCard, or Visa card. When one has to make a payment of $100,000 or more through the LINK2GOV Corporation, they can call LINK2GOV at 1-888-729-1040. Also to make a payment of $100,000 or more via the Official Payments Corporation (OPC), one can call OPC's Special Services Unit at 1-877-754-4420.

All that is required when a person calls in to make these payments is the primary and secondary SSN if applicable, or the EIN if a business. The card number and expiration date is also required along with the card's billing address and phone number as appearing on the statement or in the card company's records. Naturally also the amount of the payment is required as well. The disclosure of an email address is voluntary (but not the same way as paying taxes itself is). Also, do have a daytime telephone number ready to give out.

In any case, these payments need to be made electronically via tax preparation software, a tax professional or a card payment service provider via phone or Internet. Generally, payments cannot be cancelled. Taxpayers can contact the card issuer or service provider's customer service number to report problems such as unauthorized charges or concerns regarding payment errors. Also, you can contact the IRS at 1-800-829-1040 to report problems concerning the amount of tax owed or any other issue concerning the tax return.

Taxpayers may also write to the IRS office where the return would be mailed regarding income tax payment concerns. The impacted taxpayer's SSN or EIN, payment tax year, and payment method should be included.

Sam Donaldson is the current staff writer for Credit Cards with Rewards. A website featuring dozens of researched reviews on the latest low interest credit cards. Review and apply online with credit card issuers if desired.

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