Pay Uncle Sam Using Credit Cards
It’s that time again when millions of Americans settle up with Uncle Sam. This year consumers and business owners have far more payment options than ever to pay their taxes. Using credit cards to pay taxes can be especially rewarding even though there is a convenience fee involved. Most credit card rewards programs offer between 1% and 5% back in the form of points, miles, rebates or cash. Plus, the IRS says businesses can deduct the fees as a business expense. The IRS reports that in 2006, it received approximately 2.1 million card payments, an increase of 35% from 2005. Starting this year, individuals can pay “Trust Fund Recovery Penalties” from prior years via credit cards. Also, businesses can pay prior years federal unemployment and Form 941 taxes with plastic. Additionally, taxpayers can use electronic payment options in 26 states and the District of Columbia for payment of state and District taxes. For a complete list of payment types available by state and details on making individual or business federal taxes via cards, visit www.officialpayments.com.