IRS finalizes rules for paying taxes via credit and debit cards
The Internal Revenue Service finalized rules allowing direct credit and debit card tax payments.
The short version
- Taxpayers can now pay the IRS directly without third-party processors.
- The change stems from the Taxpayer First Act of 2019.
- This update aims to simplify payments and reduce check processing costs.
Why it matters to you. For your business, paying quarterly estimated taxes or year-end balances over the phone or online will soon involve fewer steps and less waiting around for external transfer links.
The Internal Revenue Service and the Treasury Department just released final regulations allowing the agency to directly accept tax payments by credit or debit card without routing people through third-party payment processors. For years, businesses and individuals settling accounts with the federal government had to navigate separate third-party services to put a tax bill on plastic.
Under the new rules, stemming from a provision in the Taxpayer First Act of 2019, the Treasury is permitted to cover processing fees under contracts as long as those costs are fully recouped from the taxpayers using the service. This shift gives the IRS guaranteed receipt of funds and cuts down on the high costs of processing paper checks.
According to Accounting Today, the Treasury and the IRS published proposed regulations in 2024 and received eight public comments, with most supporters noting the change will simplify the process and encourage timely filings. It is one less hurdle when dealing with Uncle Sam, even if the bill itself still hurts.
