After last year dealing with taxpayers who wanted to pay taxes of over $100,000,000 with a check by telling them that “old” method could no longer be used for such payments (Announcement 2015-36), the IRS has now dealt with yet another “old school” method of paying taxes—using cash.
Taxpayers now can pay their taxes in cash and buy a Slurpee or Big Gulp at the same time, as the IRS announced the availability of an option to pay your tax bill in cash at certain 7-Eleven convenience stores in News Release IR-2016-56.
The news release notes that this option is meant to assist taxpayers who do not want to use a bank account or credit card. Previously such taxpayers would have needed to visit an IRS Taxpayer Assistance Center.
There is a $3.99 fee imposed on each payment made this way and there is a $1,000 payment limit per day, so a client who wanted to send the $100,000,000 check can’t use this as an alternative. The service is provided by Official Payments, an organization that has been providing a credit card option for paying taxes since 1999. And it’s not quite as simple as just walking up to the counter at the store and asking to make a tax payment—there are a number of steps to be taken before going to the store and making the payment.
The news release outlines the steps to be used as follows:
Individuals wishing to take advantage of this payment option should visit the IRS.gov payments page, select the cash option in the other ways you can pay section and follow the instructions:
- Taxpayers will receive an email from OfficialPayments.com confirming their information.
- Once the IRS has verified the information, PayNearMe sends the taxpayer an email with a link to the payment code and instructions.
- Individuals may print the payment code provided or send it to their smart phone, along with a list of the closest 7-Eleven stores.
- The retail store provides a receipt after accepting the cash and the payment usually posts to the taxpayer’s account within two business days.
The IRS warns that because this is a multi-step process, taxpayers wishing to use it should initiate the process well ahead of the deadline to insure there no issues.
The IRS notes that for taxpayers who aren’t bound and determined to pay in cash, the IRS Direct Pay service is available without preregistration and with no fees, taking funds directly from a checking or savings account.