Paying taxes due to IRS with multiple credit cards

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Topic Author
DoubleClick
Posts: 598
Joined: Mon Oct 18, 2010 1:12 am

Paying taxes due to IRS with multiple credit cards

Post by DoubleClick »

Does anyone know if IRS would have an issue if I made multiple payments to them via one of their credit card processors?

Here's my situation:
- I likely will not be able to file on time and plan to ask for an extension
- I'd like to pay all my taxes on time (whatever I can estimate)
- I'd like to use multiple credit cards to pay

From what I can tell, making a credit card payment before Apr 15 through one the companies mentioned on IRS' website means that I don't have to separately file and ask for an extension. What I can't tell is, will the system somehow get confused if I make multiple separate payments?

Thanks in advance.
HouseStark
Posts: 324
Joined: Mon Oct 15, 2012 2:31 pm
Location: Minneapolis, MN

Re: Paying taxes due to IRS with multiple credit cards

Post by HouseStark »

Have you considered that the fees for using a credit card to pay and the interest charges on those credit card balances may exceed what the IRS would charge you for late payment penalties and interest? Why don't either pay what you can as an extension payment and pay the balance when able, or file and request a payment plan? Look up payment plans at IRS.gov and learn the implications and cost.
Topic Author
DoubleClick
Posts: 598
Joined: Mon Oct 18, 2010 1:12 am

Re: Paying taxes due to IRS with multiple credit cards

Post by DoubleClick »

HouseStark wrote:Have you considered that the fees for using a credit card to pay and the interest charges on those credit card balances may exceed what the IRS would charge you for late payment penalties and interest?
Thanks for the reply, but let me clarify: I can well afford to pay the taxes in cash (by check). I actually want to use credit cards to pay them because of spending requirements I'm trying to meet with the credit cards. I've already computed the 1.87% credit card fee to be worth it.

The main questions I'm trying to find out are about the process:
- is multiple payments using different credit cards okay?
- once I make these payments, do I need to actually file anything at all to request an extension? It's not clear to me: [1] says
if you pay part ($1 minimum) or all of the tax you estimate you will owe using a debit/credit card, you will not need to file an extension form, such as Form 4868. Your payment will act as the extension.
, but doesn't include PayUSAtax.com, which is listed in [2] and has the lowest fee. So my question is, can I make multiple payments via PayUSAtax.com?

[1] http://www.irs.gov/uac/Pay-by-debit-or- ... you-e-file
[2] http://www.irs.gov/uac/Pay-Taxes-by-Cre ... Debit-Card
Topic Author
DoubleClick
Posts: 598
Joined: Mon Oct 18, 2010 1:12 am

Re: Paying taxes due to IRS with multiple credit cards

Post by DoubleClick »

Just for reference: I paid with multiple cards, and everything turned out smoothly with no problems.
rb6p
Posts: 32
Joined: Tue Apr 17, 2012 8:15 pm

Re: Paying taxes due to IRS with multiple credit cards

Post by rb6p »

From the FAQ on their site:
https://www.payusatax.com/main/faq.aspx#13
Topic Author
DoubleClick
Posts: 598
Joined: Mon Oct 18, 2010 1:12 am

Re: Paying taxes due to IRS with multiple credit cards

Post by DoubleClick »

rb6p wrote:From the FAQ on their site:
https://www.payusatax.com/main/faq.aspx#13
Good to know. The one I used also is similar:
https://fed.choicepay.com/cpfed/hp_faq.jsp

In general, the limit seems to be 2 per year/quarter/month, but more details are on these websites. I'm guessing it's 2 per person total, based on the FAQ above:
"Below is a list of the maximum number of payments allowed for the same Social Security Number."
Meaning, I assume you can't make 2 tax payments on one site, and a third one on another.
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