IRS Can Directly Accept Credit and Debit Card Tax Payments

The Internal Revenue Service finalized amendments to 26 CFR part 301 (TD 10060, RIN 1545-BP66) that become effective on October 19, 2026. The regulations permit the IRS to receive tax payments directly by credit or debit card and to pay fees under contracts for such services, provided the fees are fully recouped from the taxpayers who use the cards.

The authority for the rule derives from sections 6311 and 7805(a) of the Internal Revenue Code. Section 2303 of the Taxpayer First Act (Public Law 116-25, 133 Stat. 981, 1013, July 1, 2019) amended section 6311(d)(2) to remove the prohibition on the Secretary paying fees under payment-processing contracts, allowing fee recovery from card-paying taxpayers.

The Treasury and IRS issued a notice of proposed rulemaking (REG-120137-19) on July 2, 2024 and received eight comments. No public hearing was held, and after review the agency adopted the proposed regulatory text without change.

The final rule is not subject to review under section 6(b) of Executive Order 12866, and the agency certified that it will not have a significant economic impact on a substantial number of small entities under the Regulatory Flexibility Act. The Unfunded Mandates Reform Act analysis concluded that the rule does not impose a Federal mandate that would result in expenditures by State, local, or tribal governments.

For further information, contact Crystal Jackson-Kaloz, Office of the Associate Chief Counsel (Procedure and Administration), at (202) 317-5191.