IRS Expands Electronic Payment Contract to Include Business Tax

When the Internal Revenue Service (IRS) exercised the third of four optional one-year contract extensions with Official Payments Corp.®, they also expanded the tax types eligible for credit card payment to business taxes. The contract renewal also authorizes Official Payments to continue collecting and processing individual federal income tax payments by credit card. Official Payments is a wholly owned subsidiary of Tier Technologies, Inc.

Official Payments has been processing credit card payments for individual federal taxpayers since 1999. Federal taxpayers can make Balance Due, Estimated, Extension, Installment Agreement, Prior Tax Year and Balance Due Notice Payments by phone or online. Beginning January 1, 2006, the IRS has newly authorized Official Payments to accept federal individual Advanced Payment of Determined Deficiency payments for tax years 2003 through 2005, Prior Tax Years’ payments for 1996 to 2004 and Installment Agreement payments for tax years 1996 through 2005.

The IRS has expanded the tax types eligible for credit card payments to business tax including balance due (excluding Federal Tax Deposits) on Form 940, Employer’s Annual Federal Unemployment (FUTA) and Form 941, Employer’s Quarterly Federal Tax Returns beginning in the 2006 tax season.

“After working together for eight years in providing U.S. taxpayers secure electronic tax payment processing services, we are delighted that the IRS has chosen to renew this contract for an additional year,” says James R. Weaver, Tier’s Chairman and Chief Executive Officer. “We are also extremely pleased that the IRS has expanded the contract to include business taxes. Now all businesses making federal balance due tax payments on the returns associated with Forms 940 and 941 will have the same opportunity as individual taxpayers to experience the convenience of making electronic credit card payments through our proven systems.”

Official Payments provides electronic payment services for the IRS, 25 states, the District of Columbia and more than 1,700 local governments clients nationwide. Citizens using the Official Payments service via the web site or toll-free telephone number 1-800-2PAY-TAX, are charged a convenience fee.

You may like these other stories...

Renaissance avoided more than $6 billion tax, report saysThe Senate Permanent Subcommittee on Investigations said on Monday that a Renaissance Technologies LLC hedge fund’s investors probably avoided more than $6...
A new Gallup survey found that 58 percent of smokers in the United States see increased state and federal taxes on cigarettes as an act of unjust discrimination, while 39 percent believe the tax hikes are justified.The...
Liberal groups object to bill barring taxes on Internet accessThe Internet Tax Freedom Act hasn’t been a controversial bill. In fact, it’s so popular that senators are seeking to pair it up with a far more...

Upcoming CPE Webinars

Jul 23
We can’t deny a great divide exists between the expectations and workplace needs of Baby Boomers and Millennials. To create thriving organizational performance, we need to shift the way in which we groom future leaders.
Jul 24
In this presentation Excel expert David Ringstrom, CPA revisits the Excel feature you should be using, but probably aren't. The Table feature offers the ability to both boost the integrity of your spreadsheets, but reduce maintenance as well.
Jul 31
In this session Excel expert David Ringstrom helps beginners get up to speed in Microsoft Excel. However, even experienced Excel users will learn some new tricks, particularly when David discusses under-utilized aspects of Excel.
Aug 5
This webcast will focus on accounting and disclosure policies for various types of consolidations and business combinations.