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Frequently Asked Questions

Tax Payments by Credit Card

I-PAYbyCreditCard is our answer to provide the American taxpayers with an integrated, one-stop file and pay program that many have repeatedly asked for over the years.

To bring about I-PAYbyCreditCard for you, we entered into an agreement with the Internal Revenue Service (IRS), making it possible to uniquely allow you to pay your tax liability with your own credit card, and file your return at the same time. Above all, now you can do all this, using our company FileYourTaxes.com.

The process is simple and provides many advantages.

BACKGROUND

Once you complete the data entry process, whether it is a tax return or an extension, in the event that you owe additional amounts to the Federal Government, you have a choice to make. You can pay these amounts timely, in parallel with the filing you are undertaking. Paying late, in all probability will result in incurring penalty and interest charges. Obviously, making your timely payment, together with your filing may be the most convenient and advantageous process.

To this end, in addition to using the I-PAYbyCreditCard option,  few other options are available to you. As you file your return with FileYourTaxes.com, a paper voucher will be provided in the case of Balance-Due situations. You may attach your payment instrument (Check, Money Order, etc.) and mail it in to the IRS. The postmark on the envelope will normally determine if the payment was made timely for personal income taxes, but will not have any proof value if lost in the mail. You may also use the Electronic Funds Withdrawal method for payment. This will require that you provide information for your bank account, while eFiling and the Federal Government's Treasury Financial Agent will debit your account to satisfy the Balance-Due.

THE I-PAYbyCreditCard OPTION

The FileYourTaxes.com I-PAYbyCreditCard option allows you to make the payment process much more efficient: If you owe any tax on the return or the extension (IRS Form 4868) you eFile through us and there is Balance-Due payment required for this eFiling, you can pay the whole amount or any portion of it using your credit card.

Here is how it works. In the case of taxes owed, our OnLine system will prompt you to choose your method of payment before you close that return to be eFiled to IRS. When you select the I-PAYbyCreditCard credit card option, you will be asked to provide your credit card information like you do in other instances when you make an OnLine transaction. Your credit card will be used for two different purposes to complete this tax payment transaction. The first use will be to obtain authorization from your card issuer for the amount of the convenience fee for this transaction. The amount of the convenience fee will be equal to 3.93% of the amount of tax payment you choose to make. If authorization is obtained from your card issuer for the amount of the convenience fee, an additional authorization will be obtained for the purpose of payment of your designated amount for the Balance-Due.

As indicated before, you can pay any amount up to the amount of tax shown on the applicable return, but not over the said amount.

Your credit card statement will reflect the convenience fee payment and the tax payment charges as "PAYMENT CONVENIENCE FEE" and "US TREASURY TAX PAYMENT", respectively.

Once the authorizations are obtained, and you make a payment for our other service fees, and direct us to eFile your return, we will do so. When your return is accepted we will settle the authorized charge. If the return is rejected, then, the cause of the reject needs to be cured, and then the return needs to be resubmitted. If the time it takes to cure the reject and to successfully resubmit (retransmit) the return is 7 calendar (seven) days or less, the original authorization will be considered valid. Otherwise, per IRS-EFTPS rules, a new, fresh authorization will be required. Due to the fact that the banking system may consider any authorization to be valid for a period of 30 (thirty) days, the second authorization may create an additional burden on available credit limits, and in the case of debit cards, block the available cash. If such a situation is to occur, it is your responsibility to maintain the required relationship and communication with your card issuing institution so as to maintain proper credit or cash limits with them. The last authorization date will be considered to be the payment date by the IRS.

The fact that you are making a payment by credit card will also be reported to the IRS under your tax ID number (SSN, etc.), with your chosen payment amount.

None of your credit card information will be provided to the IRS.

ADVANTAGES

  • Because of the electronic nature of the transaction, your payment will be backed up with an electronic acknowledgment and evidenced by the Declaration Control Number (DCN) that will be issued to you. This is a unique number.

  • Convenient and Efficient! With the proper eFiling, all is done at once, in an integrated manner, and in most cases taken care of for the whole year.

  • Try it and participate in the FileYourTaxes.com I-PAYbyCreditCard program!

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We look forward to your comments regarding your experience.

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