US finalises card-payment fee rules for federal taxes

Treasury Decision 10060 amends 26 CFR 301.6311-2, governing payment by credit and debit card. Its statutory basis is Internal Revenue Code section 6311. Section 6311(d)(2), amended by section 2303 of the Taxpayer First Act 2019, permits the government to pay income-tax card-processing fees where it fully recoups them from card-paying taxpayers and seeks to minimise the cost.^[1][2]

The existing regulation prohibits the IRS itself from imposing card-payment charges and from paying consideration under processing contracts, while allowing participating financial institutions to levy fees. The final rule removes the former prohibition and replaces the contracting provision with two alternatives. Contracts must remain cost-beneficial to the government.^[1][3]

Under one alternative, the IRS pays no processing fee: other transaction participants may continue charging fees, but the IRS cannot receive any part of them. Under the other, the IRS can pay a contractual fee but must recover the full amount from the taxpayer. The reimbursement is capped at that contractual cost and is payable alongside, and in addition to, the tax.^[1]

The reimbursement is not a tax imposed by the Code and cannot be refunded or credited under section 6402. The amended rule applies card-account error-resolution procedures to reimbursement-fee errors, while leaving disputes about the underlying tax liability outside those procedures. It does not turn a disputed card charge into a route for disputing the tax assessment.^[1][2][3]

For multinational groups, the distinction is between the legal payment framework and the payment channels actually available. Existing paragraph (a) limits card payments to approved cards and specified liabilities, following IRS procedures; other electronic funds transfers fall under separate rules. The final-rule explanation expressly states that it does not implement a particular payment process or contract. Groups should therefore check the operational instructions for each entity and liability before changing payment arrangements.^[1][3]

The public-inspection text links effectiveness and applicability to Federal Register publication, with date placeholders still present. It is scheduled for 19 October 2026; that date should be confirmed against the published instrument. Neither the September approval nor this October filing establishes that a new direct-payment service is already operating.^[1]