Duplicate letter

[Questionguy101]

I know the IRS uses the post mark date to determine whether a tax return is filed on time. Do they also use the post mark date to determine whether a payment is made on time?

In the CP501 letter, they say "Send us the amount due of $***** by December 31, 2011, to avoid additional penalty and interest charges". So if the taxpayer has the payment post marked it by December 31, 2011, there should be no additional penalty and interest. Am I correct?

[JG EA]

I'm just remembering what was concluded by the board before if I am remembering correctly: It needs to be there by that date. It is not a filing requirement date but a received payment date.

[oceanlovin'ea]

When making payments to IRS on an outstanding debt, they want it in their hands by that date. I had a client last week that just got her coupon to send her payment in on Wednesday and the payment was due on Monday. They tell you to allow at least 7 days to get to them. She had to overnight the payment to them in order for it to be delivered on Monday.

I am not sure about estimated payments. You can mail your check for a current year amount due on April 15th and it will be considered on time. So maybe estimated payments are the same too.

Linda, EA

[AZ-Tax]

Pay IRS by credit card?

I have had 3 clients over the yrs have their check payable to the IRS, be credited to another taxpayer even though my client/taxpayer wrote their SS# on the memo of the check. Then there was a couple clients the IRS says they didnt recieve the check and no the check was not cashed and a new check had to issued and the existing check had to have a stop payment put on it. So, have any of you have your client(s) pay via credit card and if so does it work well?

[appelman]

Credit cards work, but can be expensive.

I've always used postmark date for estimates. Never had a problem.

[Questionguy101]

I've always used postmark date for estimates. Never had a problem.

Has anyone used pay1040.com before. In their website, they said the service charge is 2.35%. So if the amount paid is $50, do they only charge $1.68? Or do they have a minimum service charge?

[appelman]

$3.89 minimum

That is, you pay the greater of 2.35% or $3.89.