• Paying federal taxes by credit card can help when cash is tight.tax forms image by Chad McDermott from Fotolia.com
  
  In 1997 the Taxpayer Relief Act authorized the Internal Revenue Sevice to accept payment of taxes by electronic means, including credit cards. Taxpayers can pay by credit card if they e-file taxes, or by phone or the Internet if they file paper returns. The act does not allow the IRS to pay for these services, so there will be a "convenience fee" if you pay federal taxes by credit card.
  
  

Availability

• Individuals may pay federal taxes due by credit card, as long as they're associated with a regular tax return, from Feb. 15 until the end of December (as of 2010). If the taxpayer files an extension (using Form 2350 or Form 4868), any payment accompanying the filing may be made by credit card until April 15. Taxpayers can also pay estimated taxes by credit card until the quarterly due date.
  
  

Options

• The IRS does not process credit card payments directly. If you e-file, your service provider will offer you the option of paying taxes by credit card when your return is completed. You only need to enter the credit card information and authorize the payment when prompted. If you file a paper return, you must use an authorized third-party service provider. This may be done either on the Internet or by telephone. The IRS maintains an online list of authorized providers and contact information at irs.gov (see References).
  
  

Required Information

• To pay federal taxes by credit card, the taxpayer must provide a name and Social Security number, plus a daytime phone number and home address. In addition, the credit card number and expiration date must be entered for payments made either online or by phone. Although providers vary in their policies, most accept Visa, American Express, MasterCard and Discover. The credit card company is required to indicate on the monthly statement that a charge is for payment of taxes, and must list the convenience fee separately.