Drake Tax - Integrated File and Pay - Pay a 1040 or 4868 Balance Due by Credit Debit Card
Article #: 11965
Last Updated: October 21, 2024
Note This article comprises former KB articles 12712 and 11965. It is herein referred to as KB 11965.
A taxpayer credit or debit card payment (MC, Visa, Discover, AmEx) for a 1040 return or a 4868 extension can be arranged from within the software through Integrated File and Pay (IFP). Payment through IFP is available only for e-filed returns and extensions and must be scheduled before e-filing. If the filing is rejected, the taxpayer's card is not charged.
Important IFP is not available for the following:
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Form 1040-X
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Form 1040-NR
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Form 2350 extension
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Prior-year returns
To learn more, log in to the Drake Software Support website > Products > Integrated File and Pay.
The following sections outline the process for using IFP.
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Complete the return (but do not e-file it yet).
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Go to the IFP screen, accessible from the Miscellaneous tab in Data Entry or via the Pay balance due with credit card link on the PMT and 4868 screens.
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Select Form 1040 or Form 4868.
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Recalculate the return to auto-fill the Balance due.
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Return to the IFP screen and click Authorize Card. The IFP Drake Software E-Payment Center page is displayed on your browser.
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Follow the steps indicated on the E-Payment Center.
Once the payment is authorized, an email is sent immediately to the taxpayer using the email address entered on screen 1. A second email is sent when the taxpayer's filing is accepted or rejected.
e-Filing
With the payment authorized, you should now e-file the return.
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If the filing is accepted, the card is charged and the taxpayer receives email notification.
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If the filing is rejected:
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The card is not charged and the taxpayer receives email notification.
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The payment authorization is no longer valid, and the card must be authorized again before re-filing the return with an IFP payment.
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FAQs
How many days do I have to transmit the return after a successful authorization of funds?
The processor can reverse the authorization in as few as 7 days if there is no activity, but will likely leave it open for 21 days. If the return is not accepted or rejected within 21 days, the authorization is, in effect, canceled, and re-authorization would be required. The return must be e-filed and accepted within 21 days of card authorization in order to complete the payment transaction. To ensure smooth processing, e-file the return within 7 days of card authorization.
What happens if the return is rejected?
If the tax return is rejected, the authorization hold on the funds is reversed and payment is not made. If you want to initiate IFP again for the return, the payment authorization must be completed again from the IFP screen before re-transmitting.
When is the payment date?
The payment date is the date the card is successfully authorized. So, even though the actual payment transaction doesn’t occur until the return is accepted, it is considered paid on the date the card is authorized.
Can I choose a different (later) payment date through IFP?
No. The payment is processed as soon as the e-filed return or extension is accepted by IRS.
Does the taxpayer’s address on the tax return have to match the billing address on the card?
No. The address should be the taxpayer’s address on Form 1040, regardless of the billing address associated with the card and cardholder.
Can someone else pay the taxpayer’s balance due?
Yes, the cardholder may be different from the person owing the tax.
The taxpayer wants to make the payment electronically, but at later date. What should I tell the taxpayer?
You can provide the Drake E-Payment Center web address (www.1040paytax.com), where taxpayers can make payments when it is convenient for them. A payment made on this website is a completely separate transaction from the e-file process.
Using IFP, can the taxpayer pay part of the balance due with a card and the rest by paper check or electronic funds withdrawal?
No. If the taxpayer uses IFP, the entire amount of the expected balance due must be paid with the credit or debit card.
Is there a way for the taxpayer to check on the status of a payment?
Yes, the taxpayer will need to go to www.integratedfileandpay.com/status and provide the payment amount (or last 4 digits of the payment card number) and his or her Social Security Number.
Is there a fee to use IFP?
Standard convenience fees apply when using the IFP service. Fees are based on the amount of the payment or payment method and are shown after selecting your payment method.
Does the IRS get my client’s payment method information?
No, the IRS does not receive any personal payment method data such as credit card numbers.
Additional Information is available by logging in to the Drake Software Support website> Partner Programs > Pay Taxes with Credit Card: