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Paying taxes with a Credit Card - Knowledgebase / Tax Returns - FileSmart Helpdesk

Paying taxes with a Credit Card

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  • Jared

Through I-PAYbyCreditCard, we are able to provide you with an integrated, one-stop file and pay program that many have repeatedly asked for over the years.  This makes it possible for you to pay your tax liability via credit card, and file your return at the same time. 

In the case of taxes owed, we will prompt you to choose your method of payment before you submit.  When you select the I-PAYbyCreditCard credit card option, you will be asked to provide your credit card information as you do in other instances where you make an online transaction. Your credit card will be used for two separate purposes. Using this service carries with it an additional convenience fee, equal to 3.93% of the tax payment you are submitting. 

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 will need to be cured, and then the return needs to be resubmitted. If the time it takes to cure the reject and to successfully re-submit the return is 7 calendar days or less, the original authorization will be considered valid. Otherwise, per IRS 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 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.