IRS Payment Process Update

Paying Uncle Sam with a credit card could potentially get a bit cheaper pretty soon…

​A federal ruling now allows the “IRS to directly accept payments of tax by credit or debit card, without having to connect taxpayers to third-party payment processors.”

​Payment processors were the only way to pay the IRS by credit card before, and they typically charge a fee of around 2-3%.

​The IRS accepting payments directly could lower those processing fees since the government agency legally isn't allowed to make money on processing fees (which is a separate federal regulation).

​We generally try to avoid credit card processing fees - but they can be justified in certain situations, like going for a lucrative signup bonus or earning elite status with a specific hotel or airline.

​This is a developing story. We don’t have any more information yet on the timing or how the IRS will implement payment changes.