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IRS’s “Pay with Cash at a Retail Partner.”

IRS has announced a new payment option for individual taxpayers who need to pay their taxes with cash. Under the new arrangement that IRS provides in partnership with ACI Worldwide’s OfficialPayments.com and the PayNearMe Company, individuals can make a payment without the need of a bank account or credit card at over 7,000 7-Eleven stores. A $3.99 per-payment fee applies.

Background. Taxes (including interest and penalties) can be paid by any commercially acceptable means that IRS deems appropriate by regs, including approved credit or debit cards as provided in IRS forms, etc. Taxpayers can: (1) authorize IRS to debit a bank account for the unpaid balance under the Direct Pay online option, or (2) make credit or debit card payments through tax software, by phone, or on-line. IRS doesn’t set or collect any fees for credit or debit card payments, but convenience fees may be charged by these service providers

Cash payment. IRS informs taxpayers that, if they prefer to pay their taxes in cash, they can do so at a participating 7-Eleven store. It generally takes five to seven business days to process the payment, so IRS advises them to plan ahead of their due date to ensure the payment is posted timely. IRS lays out four steps in the process:

  1. A person should visit the Official Payments site (officialpayments.com/fed/) and follow the instructions to make a cash payment with PayNearMe.
  2. The individual will receive an email from Official Payments confirming his information. IRS will then verify the individual’s information. This process may take two to three days.
  3. After IRS verifies the person’s information, PayNearMe will then send him an email with a link to his payment code and instructions. The individual should either print the payment code at home or send it to his smart phone.
  4. The individual should go to the retail store listed in the PayNearMe email and ask the clerk to scan or enter his payment code. He will receive a receipt from the store after they accept the individual’s cash. This receipt is confirmation of the individual’s payment and should be kept with his tax records. It usually takes two business days for an individual’s payment to post to his account.

There is a $1,000 payment limit per day and a $3.99 fee per payment. Because PayNearMe involves a 3-step process, IRS urges taxpayers choosing this option to start the process well ahead of the tax deadline to avoid interest and penalty charges. PayNearMe is currently available at participating 7-Eleven stores in 34 states. Most stores are open 24 hours a day, seven days a week. Store locations can be found at paynearme.com/en/approved-payment-locations/

IRS reminds individuals without the need to pay in cash that IRS Direct Pay offers the fastest and easiest way to pay the taxes they owe.