Official Payments Corporation announced the company has signed an agreement with the State of Iowa to provide a service enabling Iowa citizens to make a variety of delinquent tax and fee payments by credit card, over the Internet and by telephone.
The new system is scheduled to go live later this year. The contract represents the firm’s first business within the state. Official Payments also provides various credit card payment services to the Internal Revenue Service, 17 other state governments and over 700 counties and municipalities in 42 states across the United States.
When the system is launched later this year, Iowa taxpayers will be able to use the American Express Card, Discover Card, and MasterCard to make their delinquent tax and fee payments. The following taxes are included: individual income, withholding, fiduciary income, retail sales, retail use, consumer use, and inheritance. Debts owed to the Judicial Department, Department Of Inspections & Appeals, College Aid, and Department Of Human Services may also be paid through Official Payments.
Payments of delinquent taxes will be made by visiting www.officialpayments.com on the Internet or by calling 1-800-2PAY-TAX. Official Payments will charge taxpayers a convenience fee of 2.5% of their tax payment for the service. For example, a taxpayer who makes a $500 tax payment would be charged a total of $512.50; $500 for the tax payment, and a 2.5% fee, or $12.50, to cover the cost of the service. As a bonus, taxpayers using credit cards with bonus rewards programs can, depending on their card’s program, earn rewards, points, and cash-back or airline frequent flyer miles for paying their taxes. “We are pleased with our momentum in signing Iowa as our 18th state client,” said Thomas R. Evans, Chairman & CEO of Official Payments. “We will work quickly to launch the delinquent tax payment system and will then pursue other tax categories with the state,” Mr. Evans added.
In addition to the service for the State of Iowa, taxpayers can now make their Federal Form 1040 Balance Due Payments, Form 4868 Extension of Time to File, and Form 1040ES Estimated Payments (beginning March 1) by credit card, on the Internet at www.officialpayments.com or by calling 1-800-2PAY-TAX. Official Payments charges a flat 2.5% fee (minimum payment of $1.00), which is the lowest price available from the two companies that are listed in IRS instructions as providing credit card tax payment services to taxpayers.
About Official Payments Corporation
Official Payments Corporation (Nasdaq: OPAY) is the leading provider of electronic payment options to government entities. The company’s principal business is enabling consumers to pay their government taxes, fees, fines, and utility bills by credit card, via Internet and telephone. The company is unequaled in market penetration and national footprint. Official Payments is the incumbent in contracts with the Internal Revenue Service, 18 state governments, and well over 700 county and municipal governments in 42 states across the United States. In 2000, Official Payments collected and processed over $925 million in federal, state, and local government payments. Official Payments was founded in the San Francisco Bay area in 1996. Thomas R. Evans, the former President & CEO of the Internet company GeoCities, became Chairman & CEO of Official Payments in the summer of 1999. Mr. Evans brought Official Payments public in November of 1999, raising $80 million in its IPO on the NASDAQ national market. The company has experienced rapid and sustained growth over the past six reported quarters in revenue, new client acquisition, and addition of incremental services to existing clients. The company’s success can be attributed to the combination of an enormous market opportunity with a highly skilled and experienced management and staff, aggressive sales and marketing, and a core competency in developing and implementing leading-edge technical systems.Details