Daily Real Estate News  |  June 12, 2007  |   Charge it: More Businesses Paying Taxes with Plastic
June 15, the due date for mid-year quarterly estimated tax payments to the Internal Revenue Service, is only a few days away.

Many independent contractors and small businesses will put that bill on plastic.

Credit card spending on tax payments and preparation by small businesses increased 80 percent over the last year, according to a new study by Visa USA.

Tax-related transactions averaged three times the size of other purchases on Visa business cards for the 12 months that ended February 2007, according to the report, which analyzed actual spending.

Charging taxes can be more expensive than working out a payment deal with the IRS, which charges 8 percent interest, says IRS spokesman Eric Smith. The average rate on business credit cards is 14.02 percent, according to CardRating.com.

Source: Dow Jones News Service, Arden Dale (06/11/2007)