FAQ for credit card payments
- I used to use Official Payments to make monthly payments. Why can't I find them on your site anymore?
Our contract with Official Payments ended January 3rd, 2013. You can now use Value Payment Systems for credit or debit card payments. If you had previously set up a recurring payment schedule with Official Payments, you should contact them to cancel the recurring payments and consider setting up a new schedule with VPS. For more information about the change in vendors, please read the press release related to the contract expiration.
- What is a payment service provider?
It is a company that the Oregon Department of Revenue has authorized to take credit card payments from taxpayers for certain kinds of taxes due, then forward them to the department. The IRS has used this process for several years.
- What payment service provider should I use?
You are free to choose the payment service provider that best meets your needs.
- I thought my tax information was confidential, but now a payment service provider is going to have access to it.
- Can I make the credit card payment using either my Social Security number or my spouse's?
No. You need to use the Social Security number of the person listed first on your Oregon income tax return (also known as the primary taxpayer).
- How do I know which payment option to select when I make my payment?
You should select the payment option that best describes the type of payment you are making. The payment options are:
- Quarterly Estimated Personal Income Tax: Use this payment option to make your quarterly Oregon estimated income tax payments. The payment will be posted to your estimated tax account. You will claim the estimated payment on your original return when you file it with the Oregon Department of Revenue.
- Personal Income Tax Return or Extension Payment (for Form 40, 40S, 40N, or 40P returns): Use this payment option to pay the total amount you owe as shown on your return when you file it. You should also use this option if you are filing an extension (Form 40-EXT). Filing an extension gives you more time to file your current year return. You must pay the tax you expect to owe by the original due date of your return to avoid penalties and interest.
- Personal Income Tax Amended Return Payment (Form 40X): Use this payment type to pay the total amount you owe as shown when you file an amended return.
- Personal Income Tax Assessment/Deficiency: Use this option any time the Oregon Department of Revenue sends you a notice that you owe a personal income tax amount. Usually, the first notice you receive is titled "Notice of Assessment" or "Notice of Deficiency." You can also use this option if you receive a Courtesy Notice reminding you to pay the personal income tax you owe shown on your tax return (see questions #5-7).
- Withholding tax
- Lane transit payroll tax
- TriMet transit payroll tax
- Tobacco tax
- 9-1-1 emergency communication tax
- Amusement device tax
- Petroleum load fee
- Hazardous substance fee
- State lodging tax
- My return showed I owed tax. When the Oregon Department of Revenue processed my return, my tax was increased and I now owe more. I received two bills in the mail for the amount I owe. What payment option should I select when I make my credit card payment?
You received either a combination Notice of Assessment and Notice of Deficiency billing, or a combination Courtesy Notice and Notice of Deficiency. Do not pay the full amount in one credit card transaction. Your payments will not post correctly if you do. You will need to make separate credit card payments for each notice. At the beginning of each transaction, select the Personal Income Tax Assessment/Deficiency payment type. When the credit card payment service provider asks, "This payment is in response to," select which notice you are paying. Pay the amount on that notice only. You will be asked if you want to make another payment after each transaction is complete. Save the confirmation number from each transaction as proof of payment.
- I received a Notice of Deficiency for an old tax year because the Oregon Department of Revenue has adjusted my return. What payment option should I select?
Select the Personal Income Tax Assessment/Deficiency payment option. When the credit card payment service provider asks, "This payment is in response to," select "Notice of Deficiency." Save the confirmation number from the transaction as proof of payment.
- The Oregon Department of Revenue sent me an auditor report for additional tax I owe. What payment option should I select?
Select the Personal Income Tax Assessment/Deficiency option when you make your credit card payment. When the credit card payment service provider asks, "This payment is in response to," select "Notice of Deficiency." Save the confirmation number from the transaction as proof of payment.
- Can anyone make a credit card payment through a payment service provider?
As long as you have the necessary information about the tax account you are paying and your credit card, you can use a payment service provider. If you are paying for someone else, and the account is overpaid, the department is required to send refunds to the taxpayer on the return and not provide a credit on the credit card account.
- Can I pay any tax year I want?
Each payment service provider decides how many years for which it will accept payments. If the payment service provider you select cannot take your credit card payment, call the Department of Revenue to make other payment arrangements.
- I've never filed an Oregon return. Can I still use the credit card payment service provider?
Yes. When you make your payment, you will provide information to the payment service provider that it will forward to us so that we can add you to our computer system.
- How long will it take my payment to show on my account? Will you give me credit for my payment on the day I made the credit card payment?
We will give you credit for your payment on the date your credit card payment is authorized by the payment service provider. Generally, it takes us three to five business days to post your payment to your account.
- Will the department send a receipt or updated balance statement?
No. The payment service provider will issue you a confirmation number when your transaction is complete. Your credit card statement will show your payment and will act as your receipt.
- How will this show up on my credit card statement?
You will see two transactions on your credit card statement for each tax payment: one for your tax payment and one for the convenience fee you paid to the payment service provider. If you have questions about your statement, call your credit card company.
- Why am I paying a convenience fee?
The payment service provider charges you a convenience fee for using its service. This fee is based upon the amount of the credit card payment. Fees may vary between payment service providers.
- Why should I use this service and pay a fee to the payment service provider?
This service is an option for you to use. You can also make a payment to the department by check, cash, or money order. You will have to decide which payment method best fits your situation. Some of the benefits of paying by credit card are:
The department can only take direct credit card payments for accounts that have been assessed.
- Convenience. Individual taxpayers can electronically file or file their paper return early and make one credit card payment by the due date. Credit card payments can be made by phone or online.
- Safety and security. The payment service providers use standard, commercial credit card networks to ensure security of your personal and credit card information. The department does not receive or store credit card information.
- Can I deduct the payment service provider fee on my Oregon income tax return?
No. The payment service provider fee is a nondeductible personal expense.
- Why can't I pay the department directly by credit card instead and save the fee?
By law, our authority to accept credit card payments is limited. We do not directly accept or process credit cards for current-year taxes, estimated taxes, or taxes shown on a Notice of Deficiency. For these situations, you must use a payment service provider if you want to pay by credit card.
- What if I overpay using my credit card?
We will issue your refund either by check or direct deposit when we process your return. The department must issue a refund in the name of the person(s) on the return. If you have an existing debt on your account, the overpayment may be applied to that debt.
- I used my credit card to pay another person's Oregon income tax bill. If you issue a refund later, will the money come to me?
By law, we must issue the refund in the name(s) and Social Security number(s) of the taxpayer(s) listed on the tax return. You will need to make arrangements privately with the person whose tax you are paying.
- Why did I get a bill when I paid on time with my credit card?
We may have received your return and processed it before your credit card payment was posted to your account. Please call our Tax Services Unit, 503-378-4988, or toll-free from an Oregon prefix, 1-800-356-4222.
- I made a mistake and paid too much. How do I get it fixed?
If you completed the transaction and received your confirmation number, you need to speak with a Department of Revenue representative who will help you determine what you need to do to correct your refund. Call 503-378-4988, or toll-free from an Oregon prefix, 1-800-356-4222.
- What should I do if I don't want to pay the convenience fee required through a payment service provider and I can't pay my taxes by the due date using a different method?
Call us to make other payment arrangements, 503-378-4988, or toll-free from an Oregon prefix, 1-800-356-4222.
- I'm on a payment plan. Can I make monthly payments using a payment service provider?
Yes! Some payment service providers offer monthly e-mail reminders. If you are interested in signing up for this type of notification, please visit the payment service provider's Web site to learn more.
- Is there a limited number of times I can use my credit card to make payments with these payment service providers?
We have no limitations on the number of times you may use your credit card to pay your taxes. You should check with your credit card institution to find out if it has any. Also, check with the payment service provider