The IRS and Treasury Department issued final regulations (T.D. 10060) on October 16, 2026, clearing the way for taxpayers to pay taxes by credit or debit card directly to the IRS — no longer routed through third-party payment processors.
The rules implement Section 2303 of the Taxpayer First Act (2019), which lifted the old ban on the IRS paying card-processing fees. Under the final regulations, the IRS may now enter into contracts where it pays the processing fee itself — provided the full cost is recouped from the taxpayer at the time of payment. The final rules adopt the 2024 proposed regulations (REG-120137-19) without change.
For taxpayers, the practical change is simplicity: card payments could soon be made directly to the IRS, including by telephone, instead of being handed off to a processor. The IRS says direct acceptance also brings guaranteed receipt of funds and lower paper-check processing costs. Note that any reimbursement fee you pay is not a tax — so it can't be credited or refunded under normal overpayment rules (Sec. 6402).
The regulations apply to payments made on or after their Federal Register publication date (October 19, 2026). If you usually pay your balance due or estimated taxes by card, watch for the IRS to roll out the direct payment option — and compare the fee against your card rewards before choosing it.