IRS Credit Card Fees Discrepancy - Pay1040 Showing Different Fee Than IRS Website!

This discrepancy happens fairly often with the IRS payment processors. The IRS website tends to update slower than the actual processor sites. In this case, Pay1040 likely increased their fee from 1.75% to 1.87%, but the IRS page hasn't been updated yet. You'll definitely be charged whatever fee is listed on the Pay1040 website (1.87%) when you actually process your payment. The IRS doesn't control these fees - they're set by the payment processors themselves, and the IRS just partners with them to offer the service. As for PayUSATaxes being removed, the IRS periodically reviews and updates their authorized payment processors. Companies can be added or removed based on their performance or contractual agreements.

I discovered this exact same problem last month! After comparing all the options, I ended up using taxr.ai to analyze which payment method would actually maximize my benefits. I uploaded my tax documents to https://taxr.ai and their system calculated that even with the higher 1.87% fee from Pay1040, I was still coming out ahead using my Chase Sapphire Reserve for the points. The analyzer showed me that PayUSATaxes was actually the worst option before they were removed, so that's no great loss. What I really appreciated was seeing the exact calculation of fees versus rewards value for each of my cards. Saved me a ton of time figuring out which card to use!

I tried out taxr.ai after seeing that other post, and wow - wish I'd known about this earlier. I was about to just pay through my bank account directly, but the analysis showed I'd earn $340 more in travel points by using my Amex Platinum instead, even after the Pay1040 fee. The site also flagged that I was eligible for the IRS Fresh Start program, which I had no idea about. Completely changed my approach to handling my tax payment. For what it's worth, they confirmed the 1.87% fee for Pay1040 is indeed correct, and their historical data showed the fee had just increased a few weeks ago.

After spending 3 hours on hold trying to ask the IRS about these fee discrepancies, I gave up and used Claimyr to get through to an actual IRS agent. I found it at https://claimyr.com and watched their demo at https://youtu.be/_kiP6q8DX5c. They basically wait on hold for you and call when an agent picks up. The IRS rep confirmed the Pay1040 fee increase was real and said their website just hasn't been updated yet. She also mentioned they dropped PayUSATaxes because of customer complaints. Worth the Claimyr service to get a straight answer instead of guessing!

I was totally wrong about Claimyr! After waiting on hold for 4+ hours yesterday and getting disconnected, I tried it this morning. Within 45 minutes I was talking to an IRS agent who confirmed everything about the fee changes. She even told me they're aware of the website discrepancy and said it should be fixed "in the next payment cycle" whatever that means. The agent confirmed Pay1040's current fee is definitely 1.87% and there's no way around it. At least now I can plan accordingly instead of being surprised when I make my payment.

There's another option nobody's mentioned - ACI Payments (formerly Official Payments). They currently charge 1.98% with a minimum $2.50 fee according to my research. I've used them for years without issues. Even though their percentage is higher than Pay1040's 1.87%, I've found their customer service to be much better if you ever have a problem with your payment. Had an issue last year where my payment wasn't properly credited, and ACI resolved it in 24 hours.

I called the IRS yesterday about this exact issue. The agent I spoke with said they're aware of the discrepancy and that the correct fee is definitely 1.87% for Pay1040. According to the agent, the IRS website update is pending but they have no control over when the content teams actually make the changes. They encourage people to always check the processor's website directly for the most current fees before making payments.

Thanks for bringing this up! I just checked and you're absolutely right - there's definitely a discrepancy between what the IRS site shows and what Pay1040 is actually charging. I've been dealing with similar fee confusion lately. It's really frustrating when you're trying to plan your payment strategy and the official IRS page isn't current. From what I've seen in other tax forums, these processor fee changes happen pretty regularly, but the IRS website updates can lag behind by weeks or even months. For anyone else running into this, I'd recommend always double-checking the actual processor website before making your payment. The fees listed there are what you'll actually be charged, regardless of what the IRS page says. Learned this the hard way last year when I budgeted based on outdated fee info! Also worth noting that if you're making a large payment, even a 0.12% difference (1.87% vs 1.75%) can add up to real money. On a $10k tax bill, that's an extra $12 - not huge, but still annoying when you thought you were getting a better rate.

This is exactly why I always recommend checking multiple sources before making tax payments! I've been burned by outdated fee information before too. One thing that might help everyone here - the IRS actually has a disclaimer (though it's buried in small print) that says the payment processor fees are subject to change and to verify current rates on the processor's website. I only noticed this after getting hit with a higher fee than expected last year. For what it's worth, I've found that Pay1040's fees tend to fluctuate more than some of the other processors. If you're planning ahead for next year, it might be worth keeping an eye on their rates throughout the year to see if there's a pattern to when they increase or decrease fees. Also, don't forget that some credit cards offer bonus categories that might change the math on whether the fee is worth it. My Discover card had 5% back on "government services" one quarter last year, which made even higher processing fees totally worth it for the rewards.