E-file Tax and Credit Cards:

• It's convenient - Taxpayers can e-file or paper file early, make a payment by credit card and yet delay out-of-pocket expenses. Credit card payments can be made by phone, on-line or when e-filing.
  
  
• It's safe and secure - standard, commercial credit card networks are used. The IRS does not receive or store credit card numbers.
  
  
• Credit card options are available through service providers.
  
  
• There is a fee charged by credit card payment service providers. Fees are based on the amount of the payment and may vary by service provider (see below).
  
  
• Payment information will not be disclosed for any reason other than processing the transaction authorized by the taxpayer.
  
  
• A confirmation number is provided at the end of the phone or Internet transaction.
  
  
• The "United States Treasury Tax Payment" is included on the credit card statement as further proof of payment. The convenience fee will be included on the statement as a "Tax Payment Convenience Fee" (or similar transaction).
  
  
• If enrolled in such a program, taxpayers may earn miles, points, rewards or money back from the credit card issuer.
  

Following is a list of service providers and fees:

• Generally, taxpayers can make a payment through the above-named service providers using a Visa® card, American Express® Card, Discover® Card or MasterCard®.
  
  
• To make a payment of $100,000 or greater through the Official Payments Corporation (OPC), taxpayers can call OPC's Special Services Unit at 1-877-754-4420.
  
  
• To make a payment of  $100,000 or greater through the LINK2GOV Corporation, taxpayers can call LINK2GOV at 1-888-729-1040.

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  ¹Â Taxpayers should contact the service provider to receive up-to-date information regarding fees.  The minimum convenience fee is $1.
  
  

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• For more information about paying by credit card and/or to make a payment through the above services, taxpayers can contact the service providers.
  
  
• Click here for a description of the service providers' products and special offers.
  

Credit Card Convenience Fees

• Taxpayers will be informed of the convenience fee amount before the payment is authorized. This fee is in addition to any charges, such as interest, that may be assessed by the credit card issuer. Taxpayers must agree to the terms and conditions of the payment including acceptance of the convenience fee before the transaction is completed.
  
  
• The Taxpayer Relief Act of 1997 authorizes the Treasury to accept credit card payments for federal taxes but prohibits the IRS from paying a fee or consideration to credit card companies for processing these transactions.
  
  
• In order to give taxpayers the option of paying taxes by credit card, IRS has entered into non-monetary contracts and agreements with credit card payment service providers.
  
  
• The service providers act in the capacity of  merchants and are necessary intermediaries in credit card transaction processing. The service providers validate credit card numbers and expiration dates, obtain authorization from the credit card issuers and issue confirmation numbers to taxpayers at the end of the payment transaction. The service providers forward tax payment information to the IRS for posting to taxpayer accounts.
  
  
• The IRS does not receive or charge any fees for payments. Additionally, the IRS cannot pay or reimburse any convenience fee to taxpayers. The fee is a non-deductible personal expense; however, it is a deductible business expense.
  

How to Make a Credit Card Payment

• The integrated e-file and e-pay credit card option is available through a number of tax preparation software products and tax professionals. For additional information about e-filing and paying all at once (including convenience fees and accepted credit cards), taxpayers can refer to tax preparation software or a tax professional.
  
  
• When paying through tax preparation software, users will be prompted to enter the necessary credit card information.
  
  
• Pay by phone and Internet  (on-line) options are available through credit card payment service providers.
  
  
• When paying by phone, a recorded script will prompt taxpayers through the call.
  
  
• When paying by Internet, taxpayers will be prompted to complete the necessary entry fields.
  

The following information is needed in order to complete a credit card payment:

Facts You Need to Know:

• Payments must be made electronically through tax preparation software, a tax professional or a credit card payment service provider (via phone or Internet).
  
  
• Credit cards should not be forwarded to the IRS with the return or form.
  
  
• Credit card account numbers should not be written on the return or form.
  
  
• The payment date will be the date the charge is authorized.
  
  
• Taxpayers can make partial payments by phone or Internet.
  
  
• Some tax preparation software may not allow taxpayers to make partial payments.  Multiple payments cannot be made through tax preparation software.
  
  
• Taxpayers who e-file and e-pay should re-file rejected returns promptly in order to ensure timely payment.  Otherwise, the payment may have to be re-authorized through the card issuer.
  
  
• A maximum of two current year Form 1040 and 4868 credit card payments, respectively, can be made per year.
  
  
• A maximum of two current year balance due notice and prior year Form 1040 credit card payments can be made per year. 
  
  
• A maximum of two Form 1040-ES credit card payments can be made per quarter.
  
  
• A maximum of two Installment Agreement credit card payments can be made per month.
  
  
• New for 2006, taxpayers may pay a Form 1040 advance payment of a determined deficiency (audit adjustment or underreporter notice) for tax years 2003 through 2005.  A maximum of two payments can be made per year.
  
  
• New for 2006, taxpayers may pay any current balance due amount on Form 940.  A maximum of two Form 940 credit card payments can be made per year.
  
  
• New for 2006, taxpayers may pay any balance due amount on Form 941 for the current quarter and up to three previous quarters.  A maximum of two Form 941 credit card payments can be made per calendar quarter.
  
  
• Federal tax deposits cannot be made by credit card.  Amounts not properly deposited may be subject to a 10% penalty for failure to deposit through an authorized financial institution or EFTPS.  It is the responsibility of the employer to ensure that all taxes are paid or deposited correctly and on time.  Please refer to Publication 15  (Circular E), Employer's Tax Guide for additional information explaining the requirements for paying employment taxes.
  

Cancellations, Errors and Questions:

• Generally, credit card payments cannot be cancelled.
  
  
• Taxpayers can call the credit card issuer or credit card payment service provider's customer service number to report problems such as unauthorized charges or concerns regarding payment errors.
  
  
• Taxpayers can contact the IRS at 1-800-829-1040 to report problems concerning the amount of tax owed or any other matter 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 Social Security Number, payment tax year and payment method should be included.
  
  
• In the event the service provider fails to forward the tax payment to the Treasury, the taxpayer will be responsible for the tax payment and for any penalties and interest.
  
  
• Voluntary or estimated payments such as Form 4868 and Form 1040ES payments that result in an overpayment will be resolved through normal administrative procedures.
  
  
• In most instances, the Treasury will refund an overpayment to taxpayers once the return is received and processed. An overpayment may be used to settle or offset an existing debt on the taxpayer's account.