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IRS Authorizes Online Tax Payments

Wed, 12/20/2000 - 12:00am — Karen Stevenson
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The IRS has authorized online payments of amounts due with federal 1040 tax returns, 1040ES Estimated Payments, and Form 4868 extensions of time to file tax returns, effective January 12, 2001. Taxpayers filing 2000 tax returns in the spring of 2001 will be the first to take advantage of this new tax payment option. An Internet site, www.officialpayments.com will host the payment operation which has been sanctioned by the IRS.

All tax return filers are eligible to use the payment Web site, which can accessed from all computers, including home computers, business computers, and public computers such as those found at libraries. Taxpayers must have a credit card to use this service. Payments can be made using an American Express, MasterCard, or Discovery Card.

Some states are participating in this program as well. Payments for state taxes for the following states: may also be made using your credit card at the official payments Web site: California, Connecticut, Illinois, Maryland, Minnesota, New Jersey, Oklahoma, and Washington DC.

Although this may be a very handy option for some taxpayers, be sure to check out the fee schedule before using this service. Fees are based on the amount of tax owed and are different for federal and state payments. People who pay $1,000 in federal taxes online will be charged a fee of $35, and the fee to pay $1,000 in state taxes is about $35 in most states. However, fees can be as low as $1 for small tax bills and can be thousands dollars for large ones.

The IRS has authorized online payments of amounts due with federal 1040 tax returns, 1040ES Estimated Payments, and Form 4868 extensions of time to file tax returns, effective January 12, 2001. Taxpayers filing 2000 tax returns in the spring of 2001 will be the first to take advantage of this new tax payment option. An Internet site, www.officialpayments.com will host the payment operation which has been sanctioned by the IRS.

All tax return filers are eligible to use the payment Web site, which can accessed from all computers, including home computers, business computers, and public computers such as those found at libraries. Taxpayers must have a credit card to use this service. Payments can be made using an American Express, MasterCard, or Discovery Card.

Some states are participating in this program as well. Payments for state taxes for the following states: may also be made using your credit card at the official payments Web site: California, Connecticut, Illinois, Maryland, Minnesota, New Jersey, Oklahoma, and Washington DC.

Although this may be a very handy option for some taxpayers, be sure to check out the fee schedule before using this service. Fees are based on the amount of tax owed and are different for federal and state payments. People who pay $1,000 in federal taxes online will be charged a fee of $35, and the fee to pay $1,000 in state taxes is about $35 in most states. However, fees can be as low as $1 for small tax bills and can be thousands dollars for large ones.