While E Filing my federal tax return via Turbo Tax, I was disappointed to notice a Visa Credit card application as an option to pay off my debt to Uncle Sam! As you can see from the below screenshot, one has many options when paying off the IRS.
- You can directly debit from your bank account
- One can also charge their credit card to jack up their points or cash rewards.
- Pay by check
- You can request an installment plan from the IRS where there is a flat fee of $105 for the Internal Revenue Service to set up the installment plan PLUS interest and penalties if you do NOT pay them off by April 15th
- Finally, you also have the choice of applying for a prepaid NetSpend Visa Card!
Option 5 really shocked me. I guess Intuit or Turbo Tax is paid to advertise this method of payment by Visa. I don’t really get it. If it is prepaid, then why not just pay by check or debit your bank account. I guess there must be some other advantage, but I sure don’t see it. Seems like a bad idea to get another credit card when you could write a check or wire what you owe the IRS directly.