Did anyone else receive a fee from "VPS Tax Service" on their credit card after paying their taxes through Turbotax and why wasn't the fee stated at the time fo payment?

Forum|Forum|6 years ago
June 5, 2019
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TurboTax Self Employed Online

Best answer by xmasbaby0

When you pay your federal tax using a credit or debit card:

https://www.irs.gov/payments/pay-taxes-by-credit-or-debit-card

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Anonymous

We did and are not very happy about it. I called turbo tax and they said the only fee they charged was the one I expected to pay but not the extra $107 from VPS. I was never informed of this charge and feel it should be refunded. I will no longer use turbo tax. This charge is sneaky.

rcampb6812

Yes, i was billed $507.06 by VPS Tax Service at the same time I paid Turbo Tax $267 for their service. My efforts so far to obtain an explanation for the charge by VPS has been futile. I've talked to my bank about filing fraud charges, but haven't done so yet. John C. [PII Removed].

HeatherPLO

@rcampb6812

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dmorneau1967

I helped a friend with 2022 taxes. They owed $5800 and was surprised when they withdrew the amount from bank account, then an additional $144.64!! This was NOT shown when we E-filed and paid. This is also a debit card and should NOT have been charged! What fraud!. We/they will be disputing this amount. The government doesn't take enough!!??

rkhickam

Another Turbo Tax sucker who won't use their product going forward. Spent 25 minutes on the phone with Turbo Tax Support staff to understand why I was charged from VPS Tax Service. When asking the ? times - Is VPS Tax Service affiliated with Turbo Tax the response was "MAYBE" -

Total BS

mvbowens1

Yes I did also.

Anonymous112

Same. Wtf?

rb_advert

It’s just another form of taxation as far as I’m concerned but it is the fee from the IRS for laborious and expensive manual effort involved in processing those hideous electronic payments. What I learned in tax accounting in college is true. When it comes to the IRS and any doubt about what you might owe, remember this: pay more sooner. They should sell it on a bumper sticker!

DSCIENTIST

Yes, Why would turbo tax not send out a flashing warning on this? Are they getting a kickback from the government to let people pay more than they need to?

Critter-3

By law the IRS cannot pay the CC merchant fee so if you pay by CC you must pay that fee ... the IRS doesn't get that money. And as with everything else you must READ the screens before you agree to proceed ... that fee was clearly posted and you could have stopped at any time up until you hit the final button.

Note the IRS also posts the fees most clearly ... https://www.irs.gov/payments/pay-your-taxes-by-debit-or-credit-card

Critter-3

And the program does tell you there is a fee ... you just need to read all the words on the screens ... sorry they are not in flashing bright neon letters.

homazarrin12

I paid with my debit car not credit card and I still got charged 2.5%. And I never got an option to pay directly to IRS which I always did when I was filing tax with my tax accountant.
And IRS took money same day out of my account! I was happy with TurboTax but they were not transparent about this service fee.

Critter-3

Ok ... @homazarrin12 ... there is a fee if you use a debit or credit card which is really the same thing for this situation. It is only free if you set up a direct debit from your bank account. To do that you must enter the bank's name, routing & account number which is not the same as using the debit card for that account. I am sure if you look at what the prior year preparer did that is what happened. So it is your error in pulling out the debit card from your wallet and not using the info on the bottom of a check.

Critter-3

Note the difference in the screens ... and ALL the DIY programs handle this the same way so pay attention to the screen instructions ... go slow so you don't miss important items.