MasterCard Teams With H&R Block and Link2Gov to Simplify Tax Payments

MasterCard International today announced the expansion of a program first introduced last year that makes it easier for taxpayers to settle their U.S. federal tax obligations. Thanks to a relationship with H&R Block®, the world’s largest tax services company, and Link2Gov, a Metavante affiliate that provides online payment processing for government agencies, MasterCard cardholders will be offered two ways to pay their federal tax year 2005 Form 1040 balance due payment online without incurring a convenience fee.

“Using your MasterCard card to pay taxes is about ease, convenience, and, in many cases, rewards,” said Donna Johnson, vice president of New Markets at MasterCard International. “The success of last year’s first-of-its-kind ‘convenience fee free’ Debit MasterCard offer led to an expansion of the program this year to also include a rebate offer for Credit and Debit MasterCard® cards. Now taxpayers have even more incentive to settle their taxes online with MasterCard.”

The IRS reported that 1,160,000 taxpayers paid through electronic funds withdrawal last year, or 39 percent more than in 2004. The agency also reported that payment to the IRS by credit card rose 53 percent, to 1,574,000, in 2005. In 2005, taxpayers paid over $260 million in federal tax obligations with MasterCard cards. TowerGroup estimates that consumers will make 380 million federal, state, and local tax payments this year.

How Do These Programs Work?
Zero Percent Convenience Fee for Debit: To participate in this program, taxpayers must purchase an H&R Block® Online Tax Program through www.hrblock.com/goto/mcdebit/. Using H&R Block’s online tax program, taxpayers then complete their federal income tax Form 1040 (including forms 1040A, 1040V, and 1040EZ). When they are ready to settle the taxes due, they choose the PAY1040 hyperlink (www.pay1040.com) provided within the H&R Block tax program and pay the outstanding balance using their Debit MasterCard Card. The offer is valid only for online payments made on or before Oct. 16, 2006. For complete details, including availability and additional terms and conditions that may apply, please visit www.mastercard.com/2006tax.

Convenience Fee Rebate for Credit and Debit: To participate in this new program, taxpayers must purchase an H&R Block® Online Tax Program through www.hrblock.com/goto/mcrebate/. Using H&R Block’s online tax program, taxpayers then complete their federal income tax Form 1040 (including forms 1040A, 1040V, and 1040EZ). When they are ready to settle the taxes due, they choose the PAY1040 hyperlink (www.pay1040.com) provided within the H&R Block tax program, make one 1040 balance due payment using their Credit or Debit MasterCard Card, and have the full 2.49 percent convenience fee rebated back on the first $350 of the balance due payment. The offer is valid only for online payments made on or before Oct. 16, 2006. For complete details, including availability and additional terms and conditions that may apply, please visit www.mastercard.com/2006tax.

For More Information
Taxpayers with specific questions about their U.S. federal income tax obligations and regulations should contact the Internal Revenue Service at 1-800-829-1040 or visit www.irs.gov.