It has always been tough for Canadians to make American Tax Payments. Not only because they wonder why they are paying Federal Taxes from the USA, or why Americans’ don’t pay a similar tax to use Canadian roads, but also because the Treasury won’t pull funds from a foreign bank through either an ACH or a check.
So What’s a Canadian to Do?
In the past, we’ve always recommended they choose to mail the IRS a money order, or a check written from an American bank (not a cheque from a Canadian bank). The money order handles the exchange rate if you purchase it in American dollars, and it’s easy for the Treasury to cash. Always make your money orders payable to the US Treasury.
But now, there are some new options.
IRS has recently started to accept Credit Card Payments on Form 2290. All the various services that do this charge a fee, so it can be pricey. But then, if you’re buying money orders that has a cost too. So you’ll have to compare and see what will fit your budget best, and what feels right to your business.
Credit Card Payments
Here at 2290Tax, we’re now accepting credit cards for taxes as part of your e-filing. This allows you to do the whole thing in one transaction, with one charge to your credit card. We charge a small convenience fee, and will transmit your money to the IRS within 5 business days, faster if we can. We will email you the Stamped Schedule 1 usually the same day you e-file, and send another email confirmation that the IRS has received your money for your records once they have issued that confirmation.
You know you’re in good hands with us. We are an all American, family owned, company with all of our systems developed and hosted here in the USA. Our 5 star customer service team is here to answer all your questions, and guide you through the steps if you need.
Don’t hesitate to reach out with your questions any time!