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Paying USA income, property or other taxes with CC. [2010-2012]

Paying USA income, property or other taxes with CC. [2010-2012]

Old Dec 6, 2010, 11:12 am
  #16  
 
Join Date: Dec 2009
Programs: SPG Plat
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"The IRS does not receive or charge any fees for card payments. Additionally, the IRS cannot pay or reimburse any convenience fee to taxpayers. Convenience fees are charged by the service providers. The fee is a deductible business and individual expense. For an individual expense, taxpayers may deduct the fee as a miscellaneous itemized deduction subject to the 2% limit on Form 1040, Schedule A (see Publication 529)." IRS Website
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Old Dec 8, 2010, 4:41 pm
  #17  
 
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I presently have a bonus/incentive on my Citi AA card now which works out to 1.5 miles awarded per dollar spent. This makes paying taxes - and the service fee - a good deal in my opinion... calculation works out to about 1.6c.mile.

at 1m:1$, I would say no, barring something unusual (such as locking in lifetime platinum).
Keith Flyer Maven is offline  
Old Dec 8, 2010, 5:57 pm
  #18  
 
Join Date: May 2008
Programs: AA PLT 2MM
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AMEX actually just sent me a spam mail about paying my taxes using my SPG card. I think it was through official payments, but, I'm not sure, because I immediately noticed there was no special offer of reduced fee, nor any bonus to regular point accumulation for doing so. Fee on the site when clicking from the AMEX link still said 2.49%

I've since deleted the e-mail
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Old Dec 8, 2010, 7:12 pm
  #19  
 
Join Date: Dec 2008
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We just used our new Southwest Airlines cards to pay our property and school taxes. The fees (on one of the sites listed previously) amounted to about $65 for us, which normally would be a no go. But we had no other large expenditures pending and charging them got us both to the $500 gift card level offered with the card - so we figured it was worth it to us!
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Old Dec 12, 2010, 9:02 pm
  #20  
 
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How about ATM?

I just looked at the IRS link and I see that using an ATM card will only charge around a $3 fee?! I'd be happy to use an ATM card for the ta payment, provided I actually get the miles. My Morgan Stanley World card is technically an ATM card, but apparently I dont get miles/points when using it as an ATM - only credit.

Question:

What are the best ATM cards for this? I alsp have an old Continental Chase checking account with an ATM, so I get 2 miles for every dollar I believe. I cant imagine that they'd let me make such a large debit charge though... Anyone have any experience with that?
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Old Dec 13, 2010, 12:54 am
  #21  
 
Join Date: Jun 2010
Posts: 292
Originally Posted by AirJunkie
I just looked at the IRS link and I see that using an ATM card will only charge around a $3 fee?! I'd be happy to use an ATM card for the ta payment, provided I actually get the miles. My Morgan Stanley World card is technically an ATM card, but apparently I dont get miles/points when using it as an ATM - only credit.

Question:

What are the best ATM cards for this? I alsp have an old Continental Chase checking account with an ATM, so I get 2 miles for every dollar I believe. I cant imagine that they'd let me make such a large debit charge though... Anyone have any experience with that?
Banks are constantly closing this opportunity, so I recommend trying a small test payment first, since you usually can do two electronic payments for each type of tax return.

http://www.flyertalk.com/forum/miles...satax-com.html :
message 64 - DCBob reports success with SunTrust Delta Debit card ~ 8 months ago
message 75 - I report failure with CO personal debit card
message 76 - Ikar reports CO debit cards used to work

http://www.flyertalk.com/forum/miles...bit-cards.html
message 40 - I list some pointers to ~40 mileage earning debit cards, in case you want to try others.

On the other hand, even if you find a debit card that pays miles for paying taxes at the nearly free "PIN-less debit" ATM card rate (as opposed to "signature" debit-card-over-credit-network transactions), paying with a credit card + gift card may currently be a better deal if the credit card gives you points for purchasing gift cards rather than treating it as a cash advance (some posts indicate Citi has this problem). To wit: 2% or 2 Aeroplan miles/$ back with a Fidelity AmEx + 1.6% cash back via bigcrumbs to buy AmEx gift card - 2.35% service fee = 1.25% or 1.25 Aeroplan mile/$ profit versus Delta Debit card's 1 Delta SkyMile/$ profit. For more information, here is one of the FlyerTalk giftcard threads: http://www.flyertalk.com/forum/miles...purchases.html .
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Old Dec 13, 2010, 8:20 pm
  #22  
 
Join Date: Sep 2010
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Originally Posted by jbart74
I paid my 2009 taxes on my Marriott Signature Visa. The only fees I paid were the standard APR on the credit card. No extras.
How did you do this without the fees?

I have a large ($40k) estimated payment due in January so an estimated fee of about $800.

1) Barclay's USAirways card - earn 40,000 miles and 10,000 PQM's, or
2) Amex HHonors Surpass - earn 40,000 HHonors points

There are other spending bonuses based on the dollars spent, but I will meet those anyway during the year. I have set aside the cash to pay the card off in full so interest is not a consideration. I will stay enough Hilton nights in 2011 to get diamond and otherwise spend enough to get the 10k US PQM's.

Any thoughts?
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Old Jan 6, 2011, 2:03 am
  #23  
 
Join Date: Jun 2010
Posts: 292
valuetaxpayment.com: scam or real? [Update 1/7/10: it's real]

Update 1/7/2011: valuetaxpayment.com is apparently real. The IRS has updated the relevant web page to mention them.

Identical postings here, at http://www.flyertalk.com/forum/miles...satax-com.html and perhaps at other flyertalk threads, appeared yesterday and were quickly deleted after the poster's account was suspended. These postings claimed that a new site, valuetaxpayment.com offers tax payment by credit card for 2.29%, slightly lower than the previous cheapest 2.35% for AmEx and Visa (payusatax offers 1.95% for MasterCard and Discover). I was not involved in these deletions and have not been in contact with flyertalk administration, but I want to ask if anyone knows if the site is definitely a scam, known legitimate or still a subject where more research is needed.

I also want to warn others about a few things I noticed related to this new site that are not conclusive, but not encouraging.

1. Searching on google, I did not see any clear references on any other web site to the new web site, not even a press release, and no references in news.google.com. The IRS web page at http://www.irs.gov/efile/article/0,,id=101316,00.html still makes no mention of them.

2. The "live operator" contact phone contact information, which is the same as payusatax's, seems to be described on the contact web page as being for "Value Payment Systems, LLC " and terminates at recording that states the date and says that live operator service is not available today. Yesterday, that phone number had a similar recording that sounded like it was left by the same woman.

3. Both payusatax.com and this site indicate that they have a relationship to H & R Block, and the banner about this links to a page at H & R Block that only mentions payusatax. My phone call to H & R block customer service about this more than 24 hours ago resulted in them saying that they would email me a more definite response, but the representative and other people he talked to in taking my call were not aware of the site (and the representative was kind enough to take a look at the site). The only response I have gotten from H & R Block since my call has been a satisfaction survey about the call. I have now submitted a similar inquiry by H & R Block's web form.

4. Google cache of some pages from that web site shows pages apparently from payusatax.com, although that would be explicable if the sites are indeed different products of the same company.

None of the preceding proves that the valuetaxpayment.com is a scam, and, it is not a bad sign that the whois information for this site seems to match payusatax.com's, but I support the quick moderator action in removing the questionable posts. If the site is a legitimate creation of payusatax.com to accept a wider variety of cards in exchange for a higher fee, then hopefully it should be possible to determine this once payusatax gets its act together enough to answer its phones again.

I wish I could say that I wisely checked these things before trusting the web site, but I didn't. I gave that web site two different debit card numbers to test their service, and only got suspicious when I checked back at FlyerTalk and saw that the poster's account had been suspended, at which point I called the issuing banks fraud departments to have my debit cards numbers changed and then confirmed that there had been no new debit card activity before the old numbers were disabled. I suspect that the web site is not a scam, but the chance of it being a scam is high enough that I was incredibly stupid for supplying it my debit card numbers and social security number without checking around more.

For what it's worth, doing dry runs with those debit cards produced a surprising difference in how treated two debit MasterCards that use the Star ATM network. My Chase Continetnal non-preferred business debit MasterCard was offered the flat $3.89 fee and the option of paying the credit card fee if I wanted to do the transaction as a credit card, but my SunTrust Delta personal debit MasterCard was only offered the credit card rate. A subtle difference in the logos on the backs of these cards is that the world hologram on the back of the SunTrust card has the word "debit" superimposed (which is odd, since that is the card that was not offered the debit/ATM rate).

A final observation that I include only for completeness is that valuetaxpayment.com shows the American Express logo as one of the accepted payment methods for ATM/debit cards, which, if accurate, may be a new option among the payment processors. This option is probably only of interest to AmEx card holders in a pinch, as I assume this does not mean I can pay from an AmEx gift card at the ATM rate, and I am certainly not going to test that remote possibility until I have a lot more trust in the site.

Last edited by skynerd; Jan 7, 2011 at 4:51 pm Reason: valuetaxpayment.com is apparently real; IRS has updated its web page
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Old Jan 6, 2011, 3:00 am
  #24  
 
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Originally Posted by skynerd
1. Searching on google, I did not see any clear references on any other web site to the new web site, not even a press release, and no references in news.google.com. The IRS web page at http://www.irs.gov/efile/article/0,,id=101316,00.html still makes no mention of them.
Press Release: IRS Awards Multi-Year E-Payment Contract to RBS WorldPay
ATLANTA, Aug. 25 /PRNewswire/ -- RBS WorldPay, Inc. today announced that it has been awarded a multi-year contract by the Internal Revenue Service (IRS) to provide electronic payment solutions for individual and business taxes. RBS WorldPay, in partnership with Value Payment Systems, LLC, will begin processing tax payments through www.ValueTaxPayment.com and 888-9-PAY-TAX (888-972-9829) starting on January 1, 2010. Through the RBS WorldPay tax payment services, taxpayers will be able to make payments to the IRS securely with various credit cards, debit cards and emerging payment methods for less than any other federal tax electronic payment service provider.
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Old Jan 6, 2011, 4:00 am
  #25  
 
Join Date: Jun 2010
Posts: 292
Originally Posted by QL_714
Press Release: IRS Awards Multi-Year E-Payment Contract to RBS WorldPay
ATLANTA, Aug. 25 /PRNewswire/ -- RBS WorldPay, Inc. today announced that it has been awarded a multi-year contract by the Internal Revenue Service (IRS) to provide electronic payment solutions for individual and business taxes. RBS WorldPay, in partnership with Value Payment Systems, LLC, will begin processing tax payments through www.ValueTaxPayment.com and 888-9-PAY-TAX (888-972-9829) starting on January 1, 2010. Through the RBS WorldPay tax payment services, taxpayers will be able to make payments to the IRS securely with various credit cards, debit cards and emerging payment methods for less than any other federal tax electronic payment service provider.
Update 1/7/2011: valuetaxpayment.com is apparently real. The IRS has updated the web page on the subject to mention them.

I see that text only on valuetaxpayment.com. I see I phrased my statement about not seeing a press release a bit ambiguously. I meant that I don't see any reference to valuetaxpayment.com on any other web site. In addition, if I take the URL that I am looking at that has that press release ( https://www.valuetaxpayment.com/authorizedprovider.aspx ) and just change the host name to www.payusatax.com, I get the same press release, except that the web site mentioned is www.payusatax.com.

So, it looks to me as if the web site was copied and then a global string replace was done, followed by modifications to price and lists of cards accepted. That probably was done for legitimate reasons, but it could also be a scam. That is why I would like to see some reference to this new web site from some other web site that I might have a little more reason to trust (for example, somewhere on payusatax.com where they might mention if they have a sister business, which is mentioned on that IRS page, or maybe RBS WorldPay could make mention of it themselves, etc.).

Last edited by skynerd; Jan 7, 2011 at 4:53 pm Reason: valuetaxpayment.com is apparently real
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Old Jan 6, 2011, 4:24 am
  #26  
 
Join Date: Sep 2009
Posts: 1,758
http://www.worldpay.us/media/news_media33.htm

Last edited by QL_714; Jan 6, 2011 at 4:46 am
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Old Jan 7, 2011, 3:59 pm
  #27  
 
Join Date: Jun 2010
Posts: 292
Originally Posted by QL_714
As far as I can tell, that URL makes no mention of valuetaxpayment.com. It only mentions valuepaymentsystems.com, payusatax.com, worldpay.us and rbs.com.
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Old Jan 7, 2011, 4:09 pm
  #28  
mia
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If you go to:

http://www.payusatax.com/

...and click the link which says

"Want pay to pay with a different card type?"

...you will be directed to this page:

https://www.payusatax.com/PaymentServiceSelector.aspx

If you then choose (for example): Credit Card / VISA

...you will be directed to the "new" site:

https://valuetaxpayment.com/

It appears the site operator has simply created a separate site, with a higher convenience fee, to process American Express and VISA credit cards.
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Old Jan 7, 2011, 4:13 pm
  #29  
 
Join Date: Sep 2009
Posts: 1,758
Originally Posted by skynerd
As far as I can tell, that URL makes no mention of valuetaxpayment.com. It only mentions valuepaymentsystems.com, payusatax.com, worldpay.us and rbs.com.
VTP is powered by VPS. It might be best for you just to pass on this one.
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Old Jan 7, 2011, 4:16 pm
  #30  
mia
Flyertalk Posting Legend Moderator: Credit Card Programs, American Express, Capital One, Chase, Citi, Diners Club, Signatures.
 
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Both PayUSATax.com and ValueTaxPayment.com are now listed on the IRS site as approved payment processors, and both are operated by RBS WorldPay, Inc.:

http://www.irs.gov/efile/article/0,,id=101316,00.html
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