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. Two tax software developers offer integrated e-file and pay combinations for individuals who want to pay their balance due with a credit card. It accepts only Discover Card for tax payments. Tax preparers using this software will make the option known to their clients.