The Internal Revenue Service (IRS) on July 2 proposed rules changes that would allow taxpayers to directly make tax payments by credit or debit cards.
The IRS currently authorizes three third-party processors to collect tax payments made with credit or debit cards. The federal agency doesn’t charge a fee for this service, but those companies do.
For taxpayers wishing to pay with a credit card, the companies charge a fee that’s a percentage of the payment amount. Those paying with debit cards are charged a flat fee of just over $2.
Two existing restrictions have so far prevented the IRS from directly accepting tax payments by credit or debit cards. One regulation prohibits the IRS from paying any fee to use a third-party service to process taxes paid with credit and debit cards. The other prohibits the IRS from imposing any fee on individuals who pay taxes using those options. […]
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