April 30, 2010
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MC Offers Suggestions On Paying Taxes With A Credit Card, Pt.3
Guidelines for businesses.MasterCard offers the following guidelines for businesses interested in using a debit or credit card to pay tax liabilities with or without an Installment Agreement.
• Beginning in January 2010, businesses can use a debit or credit card to pay its tax liabilities when filing Form 1041 U.S. Income Tax Return for Estates and Trusts and Form U.S. Return of Partnership Income for current and prior years.
• Businesses can use a debit or credit card to pay taxes when filing 2007 - 2009 Form 940 series, Employer's Annual Unemployment (FUTA) Tax Return.
• A debit or credit card can be used when filing tax years 2007 - 2010 Form 941 series, Employer's Quarterly Federal Tax Return and 2000 - 2009 tax years for Form 943 series, Employer's Annual Federal Tax Return for Agricultural Employees including amended or adjusted return payments.
• Tax year 2007 - 2009 filings on Form 944 series, Employer's Annual Federal Tax Current Year Return and 2000 - 2009 and tax years 2000 - 2009 Form 945 series, Annual Return of Withheld Federal Income Tax (Tax Years 2000 - 2009) as well as amended or adjusted return payments.
• Employers are also able to make Annual Unemployment (Form 940) and Quarterly Employment (Form 941) balance due return payments with their debit or credit card.
• Businesses that file Form 940, Form 941, or Form 944 (Employer's Annual Employment Tax Return) are able to pay the current or past due balances due by debit or credit card over the phone or on the internet. Payments are effective on the date the charge is authorized.
• As mentioned earlier, individuals and businesses can use a debit or credit card to pay up to ten years of current and past due balances of Trust Fund Recovery Penalties. These penalties are assessed to a business or individual who willfully fail to collect or pay withheld income, employment or excise taxes. The individual or person assessed the penalty may be an officer of a corporation or a partnership, a corporate director, etc. Once the IRS assesses the penalty, the responsible person will receive a notice and demand for payment.Individuals and businesses can call 1-800-2PAY-TAX, 1-888-PAY-1040, or 1-888-9PAY-TAX for assistance with any further questions.