Comments on: IRS Tax Payment Plan: Don’t Pay Taxes With A Credit Card

By: SimplyForties

SimplyForties — Fri, 27 Feb 2009 02:38:27 +0000

I had this problem last year and took out a personal loan with my credit card company. I filled out the form online in about 5 minutes, got a good interest rate and didn’t have to hassle with the IRS at all. Even Dave Ramsey, who hates credit cards, says he’d rather owe a credit card company than the IRS.

By: Live Money Smart

Live Money Smart — Wed, 25 Feb 2009 04:18:51 +0000

For me it really would depend on the interest rates of the credit cards. But with a decent credit score, there are other ways to finance the debt. There are balance transfers, introductory rates, personal loans, even student loans (for those in college or grad school). Given the same interest rate (or even slightly higher), I’d much rather owe a private company an (unsecured) loan.

By: Jim

Jim — Tue, 24 Feb 2009 15:13:00 +0000

Very true, if you’re diligent than you can make a little by paying down the taxes plus a small fee, but very few people are like you and able to stay on point.

By: jennifer

jennifer — Tue, 24 Feb 2009 14:40:30 +0000

I’m not sure I agree–for some people. I am earning 5% in a high interest checking account. I have 0% in purchases on our visa for another year, so I paid our property taxes on visa. I would do this for our income taxes if I thought I could make a little or break even with a credit card. We have another year to earn money on our money! We keep good records, so this works for us–you just have to know what works for your family.

By: thomas

thomas — Tue, 24 Feb 2009 04:21:02 +0000

Not a fan of the IRS or interest rates.

By: Jim

Jim — Mon, 23 Feb 2009 16:42:53 +0000

I would agree except the interest rate the IRS charges is in the single digits, not double digits!

By: CK

CK — Mon, 23 Feb 2009 16:28:47 +0000

I’d much rather owe Visa (Mastercard, AMEX, Discover) then the IRS. Card companies have fewer resources to make your life hell if things go wrong in repayment.

By: Chris

Chris — Mon, 23 Feb 2009 15:35:33 +0000

I disagree. I’ve been on the IRS’ payment plan in the past. Keep in mind they can levy you at any time for any reason – even if a payment is a day late! Will the credit card company do that? Nope. If I ever owe taxes again, you can bet I’ll put it on a card.

By: The Personal Finance Playbook

The Personal Finance Playbook — Mon, 23 Feb 2009 14:47:32 +0000

I agree. Sound advice. Work it out.

By: Miranda

Miranda — Mon, 23 Feb 2009 13:59:24 +0000

Great post. The IRS is usually willing to work with you, as long as you show good faith and haven’t had problems paying your taxes in the past.