My client made 2 partial payments of tax owed by credit card. Still has balance owing, but discovers IRS limits 2 payments only. How else can he pay the balance due?

laura-tavare · ‎12-07-2019

My client made 2 partial payments of tax owed by credit card, due to limits by his card provider for amounts authorized on each transaction. Still has balance owing, but discovers IRS limits to 2 payments only. The reason he is paying by card is because he is a foreign non-resident who temporarily worked in the US during 2018. He has no US bank account, no US checks and no prior filing history which are all required for Direct Pay, EFTPS and mailing in a check. How else can he pay the balance due? Any ideas?

itonewbie · ‎12-07-2019

I wasn't aware that the IRS limits the number of times electronic payments can be made. I just looked that up for my own education and see that the limit is supposed to be by form series. This means your client might try (and I don't know whether it works) making another payment or two as 4868 extension payments since he has already maxed out the 2 times allowed for 1040 series: https://www.irs.gov/payments/frequency-limit-table-by-type-of-tax-payment

If this doesn't work, his only other option would be to pay by international wire transfer. Here's a link with more information about how the remittance should be made. Forget about the Same-Day Taxpayer Payment Worksheet the article asks taxpayers to bring to the bank as international banks would not understand or accept these forms, from personal experience, but just make sure your client includes all the vital information such as US TIN, taxpayer's name, tax type code, and tax year ((in addition to the IRS' account and routing numbers): https://www.irs.gov/individuals/international-taxpayers/foreign-electronic-payments

Please let us know how it goes. Would be good to learn from your experience.

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lauratavare · ‎12-07-2019

I considered this already, but was nervous of filing a 4868 as the return has already been filed and assume this might confuse things. Unless you mean to try paying on the 4868 form series without having filed one?
The client already tried the international wire route previously, and their bank couldn't/wouldn't do it - which is why they resorted to the card payment method.

I can't believe my biggest headache all tax season has been the IRS not allowing someone to give them money!

itonewbie · ‎12-07-2019

Yes, make a payment with 4868. The IRS will take the money still even though it's not needed in reality.

Not sure how your client approached the bank for international transfer. If your client had initiated that as a regular remittance and just include those details I mentioned, I don't see any reason why the bank would reject it. But if he used that Worksheet from the IRS, there is no way the bank will say yes.

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Still an AllStar