In case you didn’t know, the IRS added several new business tax types available for credit card payments in 2007. These tax types are payable electronically through Official Payments Corp. And the fee you pay is deductible too.
The IRS determined when it began accepting credit card payments for business taxes in 2006, that the convenience fee paid or incurred by a business making a tax payment with a credit card can be deducted as a business expense. This key feature continues in place in 2007, and represents an important benefit to business owners like you who take advantage of this convenient payment option.
Official Payments is a company authorized by the IRS to provide federal tax payment processing services. Official Payments is the only company that has provided these services continuously since the IRS began accepting credit card payments for personal taxes in 1999.
If you choose the credit card option, you can make your federal tax payments with American Express, Discover, MasterCard and VISA cards online at www.officialpayments.com, or by calling 1-800-2PAY-TAXSM (1-800-272-9829). Check the IRS website for allowable tax payment types.
Official Payments charges a convenience fee for the service. But if you use a credit card with a bonus rewards program you may be able to use your rewards to offset the fee. Check with your credit card company.