Integrated File And Pay
Integrated File and Pay (IFP) is a fast and secure way for your customer to pay a tax due amount by credit or debit card when their return is e-filed. The payment is authorized before the return is e-filed and is processed after the return is accepted. The payment process is initiated on the IFP screen in the customer’s return.
Payments can be made with an e-filed Form 1040 or Form 4868.
It’s as simple as 1-2-3:
- Complete the tax return.
- Confirm the balance due and authorize the payment (IFP screen).
- Transmit the return.
Once the return is accepted, the payment is processed and confirmation is sent to the email address provided by the taxpayer.
If the return is rejected, the hold on the funds is released and the payment is not made. Authorization must be initiated again on the IFP screen before e-filing the return again, or the taxpayer must choose another payment method. See the Drake Tax User’s Manual or the IFP screen help for more details.
Benefits
Peace of mind:
- The balance due payment is made before the deadline. (1040 payment deadline is April 15, 2020; visit www.IRS.gov for additional deadlines.)
- Payment confirmation is emailed to the taxpayer once the e-filed return is accepted.
- Payment status is available on www.integratedfileandpay.com/status.
Speed and convenience:
- It takes less than three minutes to process the card authorization, from start to finish.
- There is no need to mail a check or payment voucher to the IRS.
Resources
Drake Tax User’s Manual, “Electronic Payment Options” section of Chapter 5, “Return Preparation”
For help with the card authorization and payment transaction process, contact Value Payment Systems customer service at (888) 877-0450
For help with the the IFP screen and functionality within Drake Tax, contact Drake Support at (828) 524-8020 or epay@drakesoftware.com
How do I know it is secure?
- Extensive audits and testing were performed to secure the IRS contract.
- Only withdrawals authorized by the taxpayer are made; no other funds can legally be withdrawn.
- The taxpayer receives electronic confirmation when the card transaction is authorized.
- The tax payment is listed on the taxpayer’s bank statement as proof of payment.
- Bank account information is safeguarded, along with other tax return information.
Payment options:
(Standard card processing convenience rates apply)
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Frequently Asked Questions
Q: How many days do I have to transmit the return after a successful authorization of funds?
A: The processor will reverse the authorization in 8 days if there is no activity. If the return is not accepted or rejected within 8 days, the authorization is in effect cancelled, and reauthorization would be required. The return must be e-filed and accepted within 8 days of card authorization in order to complete the payment transaction. To ensure smooth processing, e-file the return within 5 days of card authorization.
Q: What happens if the return is rejected?
A: 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.
Q: When is the payment date?
A: 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.
Q: Can I choose a different (later) payment date through IFP?
A: No, the payment is processed as soon as the e-filed return or extension is accepted by IRS.
Q: Does the taxpayer’s address on the tax return have to match the billing address on the card?
A: No, the address should be the taxpayer’s address on Form 1040, regardless of the billing address associated with the card and cardholder.
Q: Can someone else pay the taxpayer’s balance due?
A: Yes, the cardholder may be different from the person owing the tax.
Q: The taxpayer wants to make the payment electronically, but at later date. What should I tell the taxpayer?
A: 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.
Q: Using IFP, can the taxpayer pay part of the balance due with a card and the rest by paper check or electronic funds withdrawal?
A: No, if the taxpayer uses IFP, the entire amount of the expected balance due must be paid with the credit or debit card.
Q: Is there a way for the taxpayer to check on the status of a payment?
A: Yes, the taxpayer can 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.