So, let me see if I understand this: The IRS is letting people pay taxes in cash, but you still have to go through the internet to make the arrangement. But they completely expect some group of people to not be engaged in the system enough to bother having a checking account or a credit card, or even engage in business where your identity can be proven separately from your filing. Who knew the Fed would help make identity theft even more rewarding? This story from Minnesota is one tiny example of what’s happening right now==> County residents falling victim to IRS refund fraud.
Think about that. The IRS appears to be allowing people to file their taxes in a manner which allows them to keep their identity secret or even faked. If accurate, this abets and arguably encourages identity theft and fraud at a federal level. So let’s say you have a refund coming because of the Earned Income Tax Credit, or just because what you’re filing is faked. So, you get a check and have it cashed at the local check-cashing place. No problemo.
Paying taxes is never fun, but it should be a little easier for some people this year.
The IRS announced on Wednesday a new option for people who want to pay their taxes in cash: turn in the money at a 7-Eleven.
“Taxpayers have many options to pay their tax bills by direct debit, a check or a credit card, but this provides a new way for people who can only pay their taxes in cash without having to travel to an IRS Taxpayer Assistance Center,” IRS Commissioner John Koskinen said in a statement.
The option is aimed at individuals who may not have a bank account or a credit card with which to make a payment. Still, it takes an email account. To pay in cash, a taxpayer has to visit the IRS.gov payments page, select the cash option, follow the instructions and wait for a confirmation email from OfficialPayments.com. Then the company PayNearMe sends the taxpayer an email with a link to a payment code and instructions. The taxpayer should get a receipt from the 7-Eleven store. There’s a $1,000 payment limit per day and a $3.99 fee per payment. This year, this payment option is available at participating stores in 34 states.
Meanwhile, all taxpayers this year have an extra three days to file their returns. While taxes are usually due April 15, they’re not due until April 18 this year because of the timing of a local Washington, D.C. holiday.