Consumers and businesses have many more ways to pay what they owe to the U.S. government than ever before. Among those choices, credit cards are gaining in popularity as an option for taxpayers.
As the IRS explains on its website, the benefits of paying taxes by credit card include the convenience of e-filing or paper file early while delaying out-of-pocket expenses. Taxes can be paid by phone, over the Internet or when e-filing.
Meanwhile, paying taxes with a commercial credit card network is safe and secure, with the IRS never receiving or storing credit card numbers.
And although paying taxes with a credit card involves a convenience fee, choosing to pay with a reward credit card can still allow consumers to get something back. Of course, depending on what rewards they prefer, the taxpayer can also choose to pay with a cash back credit card or an airline credit card. With one of these credit cards, American can take some of the sting out of turning over their dollars to Uncle Sam.
Meanwhile, businesses can deduct taxes paid with a business credit card or other plastic as a business expense, according to the IRS.