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How to pay taxes with your MasterCard

If you are a MasterCard cardholder, you can pay your federal income tax bill 24 hours a day, seven days a week from the comfort of your home or office.  Paying tax bills represents another opportunity for you to experience the convenience and flexibility of your MasterCard card...one payment at a time.

What You Should Know About Paying Taxes For the 2004 Tax Season

The IRS card acceptance program for balance due payments begins 12 January 2001 through the 16 of April 2001. Taxpayers making quarterly estimated payments are now able to make these payments year-round. Taxpayers filing for an extension can make card payment for anticipated taxes through April 16, 2001 and submit paperwork at a later date.

One Card - Two Ways To Pay Your 2004 Taxes!

 This year, taxpayers can use their MasterCard cards to pay their 2000 federal income taxes by phone or on the Internet. All they need to do is call one of the toll-free phone numbers below using a touch-tone phone and follow the IVR system prompts or log onto one of the Web sites below and follow the instructions.

Service Provider	Phone Number	Web Site
Official Payments	1-800-2-PAY-TAXSM	www.officialpayments.com

MasterCard cardholders can use their MasterCard cards to pay their federal income taxes by one of the following methods:

• Have an authorized tax preparer electronically prepare and file their income tax return through the IRS e-file system and then make payment by phone using one of two IVR systems available, or online at the service provider web sites
• Have an authorized tax preparer who uses Orrtax tax preparation software not only prepare and e-file your tax return, but also pay the balance due electronically via the tax preparer (this option does not require the cardholder to utilize the IVR). To locate the nearest participating preparer that uses Orrtax tax preparation software please visit Orrtax at http://www..Orrtax.com
• Prepare an electronic return using one of the many tax preparation software packages available and then make payment by phone using one of two IVR systems available, or online at the service provider web sites
• Prepare a paper return and then make payment by phone using one of two IVR systems available, or online at the service provider web sites

The service provider system will prompt you to enter the taxpayer's primary social security number and balance owed to the IRS (from the tax return). After entering this information, the system will inform you about the convenience fee for this service*. At this point, you will be given the option to either proceed with the tax payment or to terminate the session. If you elect to proceed, the system prompts you to enter your MasterCard card number, expiration date, zip code where your monthly statement is mailed and your daytime phone number. If you've completed a paper return you should include this confirmation number on the upper left-hand corner of your return prior to mailing it to the IRS. It is also advisable to record this confirmation number on the copy you keep for your files.

When your monthly card statement arrives, it will contain two separate entries related to the federal income tax payment. The first entry indicates the amount of tax paid and identifies the merchant as "US Treasury Tax Payment". A second entry shows the amount of the convenience fee and is identified as "Tax Payment Convenience Fee".

*Cardholders should note that the convenience fee assessed for the card payment will vary based upon the service provider selected. For a full list of the convenience fees please visit the service provider web site at http://www.officialpayments.com.

Should I Really Use My Credit Card To Pay Taxes?

Before you file, make a thorough assessment of whether this is a good option for you. Ask yourself the following.

• What are the advantages?
• Am I participating in a rewards program that provides incentives for using this payment option?
• Will this transaction bring me over my credit limit?
• If I choose to revolve, what are the costs and advantages?

Contact your issuer and inquire about the following:

• Will I receive points or rewards?
• What will the interest rate be?
• What is my credit limit?

More Information
Calls pertaining to your tax obligation should be referred to the IRS's toll-free number (1-800-829-1040) or visit the IRS at http://www.irs.gov.

Depending upon the service provider selected when initiating your payment, you can call the following toll-free customer service numbers for questions about specific tax payment transactions.