Refunds arrive in half the time as with a paper return and any tax due can be paid as late as April 17, 2000. When filing a balance due return, taxpayers can pay with an automatic withdrawal from a bank account simply by pre-authorizing a direct debit from their checking or savings account on a date they specify. The IRS offers these electronic payment options through partnerships with private industry, including credit card processors and tax preparation software developers. More than 129,000 people paid their federal taxes by credit card or direct debit transactions during 1999. There is no fee for this service.
Many people already use such direct debits for their mortgages, auto loans or utility bills.
Last year, the IRS limited the direct debit option to computer-filed returns. Taxpayers can file early and pay later by authorizing a direct debit for April 17. Taxpayers can make credit card payments through tax software or by phone. The IRS does not set or collect any fees for credit card payments, but the private sector partners may impose convenience fees. The tax payment to the U. S. Treasury and the convenience fee will be listed separately on the cardholder s credit card statement.