Don’t have the cash to pay your tax bill? The government gives you the option to charge it to a credit card. And now for the first time, businesses can pay taxes with a credit card too. Scary thought isn’t it? Creating debt to pay taxes. You may want to rethink your business strategy if this is your approach.
Official Payments Corp (OPC) is the only company that has provided federal tax payment services since the Internal Revenue Service (IRS) initiated this program in 1999.
Individual taxpayers can make secure federal tax payments for:
- Form 1040 (All 1040 Forms) Balance Due – Tax Year 2005
- Form 1040ES Estimated Payment – Tax Year 2005 (Ends January 31, 2006)
- Form 1040ES Estimated Payment – Tax Year 2006 (Starting March 1, 2006)
- Form 4868 Automatic Extension to File – Tax Year 2005
- Installment Agreement Payment Form 1040 – Tax Years 1996 through 2005
- Prior Tax Year Form 1040 – Tax Years 1996 through 2004
- Form 1040 Advance Payment of a Determined Deficiency (Audit Adjustment or Underreporter Notice) – Tax Years 2003 through 2005
And now for the first time, the IRS is accepting card payments for certain business taxes. Additionally, the IRS has determined 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 represents an important benefit to business owners taking advantage of this new option. You can pay the following business taxes:
- Form 940 Employer’s Annual Federal Unemployment Tax Return (including 940-EZ and 940-PR) – Tax Year 2005
- Form 941 Employer’s Federal Quarterly Tax Return (including 941-PR and 941-SS) – Tax Years 2005 and 2006
Official Payments charges citizens a convenience fee for the service.