We paid them, they did not pay the IRS, they never told us.

We owed $7K and like last year I paid thru https://payusatax.com/ who added a $139 service charge. I did this April 6 (before vacation), got their receipt AND then a confirmation email, all taken care of.

WRONG!!

Today we got our credit card statement in the mail. It showed the April 6 charge but then on Apr 19 PayUSATax credited us with the entire amount. WTF? We called them to learn there was a problem with my SS number and IRS would not accept the $$, hence the refund to our CC. OK...BUT WHY DIDN’T YOU TELL ME???

We called the IRS, got a very confusing voice mail menu (at 7PM), and gave up. We’ll call our tax guy tomorrow and see what he recommends. We still owe the $$, if there’s an IRS penalty I will be very pissed.

We’ve used the company before, all worked well. But not this year. All they had to do was send me an email, how hard is that??

/rant mode off/

This message has been edited. Last edited by: Sigmund,

There will be a penalty. You may get them to pay it for you, if they value your future business.

I have learned in forty years of business to NEVER call the IRS. I have a CPA who tells me what to do. What the IRS tells you from one day to the next differs. The penalty and interest will not be huge.

quote:

Originally posted by ZSMICHAEL:
The penalty and interest will not be huge.

Agreed. My e-file got kicked last year since the wife had her SSN stolen the year before and someone filed a return with it. So we had to send in a paper copy with a check about 4 (?) weeks late. I think it was like $70 or something all said and done.

Made sure we had the special ID Pin this year.

They can't waive interest but if you explain the details of what happened and provide clear support they will likely waive any penalty.

Go ahead and write the letter now, assemble the support, and wait patiently on the notice. It may be months before it shows up. Trying to preemptively explain that will fry their minds - I'd just wait.

Of course, get the original balance paid ASAP.

I guess I'm missing the point of using a third party. Could you not have enclosed a check with your tax return?

quote:

Originally posted by Rey HRH:
I guess I'm missing the point of using a third party. Could you not have enclosed a check with your tax return?

Was gonna ask the same, but I suspect it's to be able to pay with credit card.

quote:

Originally posted by Georgeair:

quote:

Originally posted by Rey HRH:
I guess I'm missing the point of using a third party. Could you not have enclosed a check with your tax return?

Was gonna ask the same, but I suspect it's to be able to pay with credit card.

Right you are, Mr. Kotter. We get United miles using the card, plus it's paid immediately (well, not in our case...), no lost in the mail, etc.

No word yet from our CPA, I'll update.

I always pay Fed and State with EFT. Simple, free, fast, safe, and payments are confirmed.

Up your nose with a rubber hose, Mr. Milechaser.

I was also going to speculate that anybody foolish enough to pay that kind of freight purely to get miles was nuts, but didn't want to assume. Most miles programs value, or even cash back, is on the order of 1% in real value. So for a $7,000 payment that's $70 in value that can be purchased for only $139.

UPDATE: We talked to our CPA (good advice from ZSMichael) who said mail it in. He said to bring him the expected penalty letter, he'll then write up something for the IRS. I may also write something less polite to PayUSATax, I'll see what he suggests.

This time I'm mailing a check (certified mail), it's going to the IRS office in Cincinnati. I wonder if it'll sit on the desk of one of Lois Lerner's "rogue agents."

I don't get using third parties to pay taxes, for all the reasons mentioned above and then some.

I believe the taxing authorities that do accept credit cards gross up the amount due so the taxpayer eats the credit card fees. That's bad enough. To put yet another party in the food chain? Yikes.

I dislike paying taxes but pay what I owe. No more than that, though.

And, yeah, miles can be bought for about a penny each. Which is exchanging cash - something that can be used anywhere, for anything - for something the use of which is controlled by pinhead airline executives and their ever-changing policies.... So, in my calculus, the value of the mile bought is actually less than the penny.

I file on-line, but send a check via certified mail, return receipt.

quote:

Originally posted by Sigmund:
UPDATE: We talked to our CPA (good advice from ZSMichael) who said mail it in. He said to bring him the expected penalty letter, he'll then write up something for the IRS. I may also write something less polite to PayUSATax, I'll see what he suggests.

This time I'm mailing a check (certified mail), it's going to the IRS office in Cincinnati. I wonder if it'll sit on the desk of one of Lois Lerner's "rogue agents."

Put "MAGA" in the lower left corner of the envelope and see what happens.

Got the dreaded IRS letter, our interest/penalty was $28.20 due by June 25. The three-page letter included a chart showing the math of how they reached that $28 figure.

We are going to pay. Our tax guy offered to write a letter of explanation and the IRS letter shows an “Offer In Compromise” where we can offer to pay less, but we’re not going to waste any more of our - or Lois Lerner’s - time on this.

I never pay estimated tax and often don't pay in full when filing on April 15th... decided back in 2016 to see exactly how much that cost me in penalties and interest to not do it the way every CPA in the country says I should...

penalty and interest was: $23.69.......