Tax Payments

Tax FAQs: Frequently Asked Questions

Q: Why is the IRS accepting electronic payments from individuals?
A: The goal is to give taxpayers a wide range of ways to make balance due payments. The choice remains with you about whether to pay by payment card, direct debit, check, money order.
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Q: If I use my MasterCard card to make a balance due payment, when is my payment due by?
A: For tax year 2008, your tax payment must be made by midnight April 15, 2009.
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Q: Can a Federal tax obligation be discharged in bankruptcy court?
A: No, an individual's federal tax obligation cannot be discharged in bankruptcy court. An individual will be required to make full payment on this tax obligation.

Consult your tax professional to discuss your particular situation.

For additional information on federal tax payments and IRS e-file, contact one of the resources listed below:
Payment Provider Phone Number Web Site
IRS 1-800-829-1040 www.irs.gov
Official Payments 1-800-2PAY-TAX(SM) www.officialpayments.com
Link2Gov 1-888-PAY-1040 www.pay1040.com
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Q: What information will I need to have available to make payment with my MasterCard card?
A: When prompted (either by the IVR phone system, or online at the payment provider website) you will need to enter the following information:
  • Taxpayer ID (primary social security)
  • Payment amount (in whole dollars) based on the balance due
  • 16-digit MasterCard card number
  • MasterCard card expiration date
  • Zip code where monthly MasterCard account statement is mailed
  • Daytime telephone number
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Q: How will my federal tax payment transaction be posted on my MasterCard card account statement?
A: When your monthly account statement arrives there will be two separate entries related to the tax payment transaction - the first entry will contain the amount of tax paid and identify the payee as "US Treasury Tax Payment" - the second entry will contain the convenience fee amount and be identified as "Tax Payment Convenience Fee."
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Q: What types of Federal income taxes can I pay with a MasterCard card?
A:
  • Current and past due Form 1040 series balance due payments,
  • Form 4868 (automatic extension of time to file) payments
  • Form 1040-ES (estimated tax) payments
  • Form 1040 advanced payment of a determined deficiency and Trust Fund Recovery Penalty
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Q: What states currently accept MasterCard for the payment of state income taxes and business taxes?
A: View the What Can Be Paid page for a list of the states and what taxes can be paid there.
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Q: Can a taxpayer make a payment for past due tax balances?
A: Yes, individual taxpayers can make card payments for taxes up to 10 years past due. Business can make Form 940 and Form 941 balance due payments for up to 10 years past due.
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Q: Can a taxpayer set up installment agreements for the current year (2008) and pay with a MasterCard card?
A: Yes, they can set up an agreement directly with the IRS. Taxpayers can also set up an installment agreement with the IRS for taxes that are up to 10 years past due. Taxpayers can then make installment payments with their cards through either LINK@GOV or Official Payments Corp®.
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Q: Can a taxpayer make payments on a delinquent 2008 balance due?
A: Yes, payments can be made January 1, 2009 through December 31, 2009.
Payment Provider Phone Number Web Site
Official Payments 1-800-2PAY-TAX(SM) www.officialpayments.com
Link2Gov 1--888-PAY-1040 www.pay1040.com/
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Q: How will I know what fees will be assessed to my card payment transaction?
A: After you have entered the payment amount, the system will disclose the convenience fee. The fees may vary depending upon the taxes due and the payment provider selected. At this time, you will have the option to terminate the session or proceed with the card payment transaction.
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Q: If I have a question about my federal tax payment made by phone or online, who can I contact?
A: Depending upon the payment provider selected, taxpayers can call the following toll-free numbers for questions about specific tax payment transactions.
Payment Provider Phone Number Web Site
Official Payments 1-800-2PAY-TAX(SM) customerservice@officialpayments.com
Link2Gov 1-888-PAY-1040 support@link2gov.com
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Q: If I have a problem with my MasterCard card payment, who can I contact?
A: MasterCard recommends that you contact the bank (your issuer) for questions related to billing and fees that appear on your MasterCard account statement. For specific questions relating to federal taxes you can call the IRS at 1-800-829-1040 or visit www.irs.gov.
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Q: Who should I call if I have questions about the amount of tax owed on my tax return?
A: Taxpayers can reach the IRS directly by calling 1-800-829-1040.
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Q: What types of taxes can businesses pay with a MasterCard card?
A: Beginning in January 2009, businesses can make a credit or debit card payment for the balance due on the following employment taxes: Form 943 and Form 945 series for current year, prior year and installment agreements; Form 944 series for prior year; and amended or adjusted return payments for Forms 940, 941, 943, 944 and 945 series.
  • Form 940 series, Employer's Annual Federal Unemployment (FUTA) Tax Return
    • current year, prior year or installment agreement payments
  • Form 941 series, Employer's Quarterly Federal Tax Return
    • amended or adjusted return for current year, prior year or installment agreement payments
  • Form 943 series, Employer's Annual Federal Tax Return for Agricultural Employees
    • current year, prior year, installment agreement, and amended or adjusted return payments
  • Form 944 series, Employer's Annual Federal Tax Return
    • current year, prior year and amended or adjusted return payments
  • Form 945 series, Annual Return of Withheld Federal Income Tax
    • current year, prior year, installment agreements, and amended or adjusted return payments
Businesses may pay their current past due Form 940 (Annual Unemployment) balance , current and past due Form 941 (Quarterly Employer Return) balance, current Form 944 (Annual Federal Tax Return) balance due return with a card

Taxpayers with or without an Installment Agreement can use a credit/debit card to make these payments.
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Q: What are my options in preparing my federal return if I want to pay with my MasterCard® card?
A: There are three ways you can prepare your taxes and make payment with your MasterCard card:
  • Prepare a paper return and then make payment by phone or Internet through the service provider.
  • Prepare your return electronically yourself using one of the many tax preparation software packages available and then make payment by phone or Internet through the service provider.
  • Have an authorized tax preparer electronically prepare and file your income tax return through the IRS e-file system and then make payment by phone or Internet through the service provider.
You can use your MasterCard® card to pay your 2008 federal income taxes by phone or via the Internet. To proceed with payment over the phone, all you need to do is call one of the toll-free phone numbers below using a touch-tone phone and follow the Interactive Voice Response system prompts. To make payment online, you can log onto the service provider's Web site:
Service Provider Phone Number Web Site
LINK2GOV 1-8888-PAY-1040 www.PAY1040.com
Official Payments Corp® 1-800-2PAY-TAXSM www.OfficialPayments.com
Please make a note of the service provider you use in case you need to contact them in the future. A convenience fee will be assessed for the card payment transaction and will vary based upon the balance due

Cardholders may also file and pay their 1040EZ and Tax Extensions at www.bullseyetax.com
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Q: What is IRS e-file?
A: IRS e-file is an electronic tax-filing service available to taxpayers through an authorized IRS e-file provider, online filing software or telefile. It is the fastest and most accurate way available to file taxes.
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Q: Is there a list of authorized e-file tax preparers available?
A: You can check with your local tax preparer to inquire if they are authorized with the IRS e-file system, visit the IRS Web site at www.irs.gov, or you can check your local phone directory.
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Q: Where else can I get additional information about IRS e-file?
A: You can reach the IRS directly by calling 1-800-829-1040, or by visiting the IRS Web site at www.irs.gov.
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Q: What's the difference between surcharging and convenience fees?
A: MasterCard rules specifically prohibit merchants from adding a fee for acceptance of MasterCard cards. This is considered surcharging. These rules support universal acceptance of all MasterCard cards and ensure our cardholders are not discriminated against at the point of sale. However, there are business cases that may warrant a service fee. (Ex. tax payments) Furthermore, MasterCard does not permit service fees to be advertised as offsetting the cost of acceptance.
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Q: How can I be sure that my MasterCard® card payment has been processed?
A: Upon card authorization, the service provider will provide you with a confirmation number. This number is a record that the card issuer has approved and authorized your tax payment transaction.
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