The ugly truth during tax season is that some taxpayers are going to have a balance due when filing their return. In fact, the IRS reports that approximately 22 percent of American taxpayers owed the IRS in 2006 (1), and nearly 2 million of them paid with a credit card, a 36 percent increase over 2005 (2).
This year to help its clients paying their IRS bill with plastic, H&R Block has enabled most cardholders to lower their convenience fee to 1.99 percent, as opposed to the standard 2.49 percent card convenience fee. The new lower fee is available to clients paying their income taxes with MasterCard, Visa, or DiscoverÂ® credit or debit cards.
H&R Block, in cooperation with LINK2GOV Corp. and the payment card associations, is offering this lower fee so that taxpayers everywhere can have their taxes prepared by the leading tax preparation company and enjoy easy, lower-cost options for federal tax payments. The special convenience fee rate expires April 17, 2007.
“While every taxpayer obviously prefers a refund, the reality is some Americans owe taxes at the end of the year. We want to make paying a balance due as easy and low-cost as possible,” said Kevin Leek, H&R Block’s Director of Business Development.
“The use of payment cards to settle federal tax obligations offers consumers convenience and potential rewards, such as airline miles or points,” according to Steve Carnevale, Vice President, Service Industries, MasterCard Worldwide. “Payment cards also ensure that H&R Block clients can make payments immediately, eliminating the fear of late fees or penalties resulting from lost or delayed checks,” he added.
Taxes paid by credit or debit card at H&R Block are processed by LINK2GOV, an IRS-approved payment processor and a Metavante company. The payments are processed immediately, and taxpayers are issued a confirmation number upon receipt.
About H&R Block
H&R Block Inc. is a leading provider of tax, financial, mortgage, accounting and business consulting services and products. H&R Block is the world’s largest tax services provider, having prepared more than 400 million tax returns since 1955. The company and its subsidiaries generated revenues of $4.9 billion and net income of $490 million in fiscal year 2006. The company operates in four principal business segments: Tax Services (income tax preparation and advice via in-office, online and software solutions); Mortgage Services (non-prime mortgage originations and loan servicing); Business Services (tax, accounting and consulting services for midsized businesses); and Consumer Financial Services (investment and financial advisory services, retail mortgage loans and banking services). Headquartered in Kansas City, Mo., H&R Block markets its services and products under three leading brands – H&R Block, Option One and RSM McGladrey.
1 Internal Revenue Service, “Taxpayer Usage Study (TPUS) Weekly Report 15,” Aug. 25, 2006.
2 Internal Revenue Service, “Electronic Payment Options for 2007,” FS-2007-11, Jan. 2007.