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The Tax Man Chargeth (1/11/00)
FULL STORY:
It's official! Starting this Friday, U.S. taxpayers will be able to charge
their federal income tax payments for the 1999 tax year via MasterCard,
American Express and Discover cards. VISA is not participating in the program.
The credit card option is the result of an agreement between the IRS and
Official Payments Corp., formerly known as U.S. Audiotex. This will be the
first full year of the credit card payment program. During the 1998 tax
season, the IRS and Official Payments conducted a pilot program in which 44,840 tax
transactions were processed, representing a total of $174 million in payments.
This year the IRS has included the Official Payment's toll free number in 140
million 1040 Form instructions. In addition to balance due payments, the
Official Payments service can be used by taxpayers filing for a 1999 tax year
extension and also for estimated tax payments for tax year 2000. Official
Payments Corp. charges consumers a convenience fee of approximately 2.5% to
process personal tax payments. For example, a taxpayer who owed the government
$999 and charged their taxes would find a total of $1,024 on their credit card
statement ($999 for the tax bill and $25 for the convenience fee). Official
Payments has also partnered with several state governments and 450+ municipal
and county entities, in which it collects property taxes, real estate taxes,
parking fines and other government fees by credit card over the telephone and
the Internet. To pay your taxes with a credit card call 1-888-2PAY-TAX. The
complete fee schedule can also be found at the Official Payments Corp. Web
site at www.officialpayments.com.
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