Some taxpayers using a website that facilitates credit card payments for the IRS say their payments were misdirected and fixing the errors took weeks or months.
PayUSAtax is approved by the IRS to help taxpayers who want to use credit and debit cards or PayPal. Two other companies are approved to provide similar services. The IRS will not directly take these electronic payment methods.
After years of making tax installment payments through payUSAtax, Traci Thompson said she got a certified letter from the IRS.
"I felt like I was in trouble," Thompson said. "I felt nervous, then I called the IRS."
Nervousness turned to frustration — she says she made at least two payments through payUSAtax in February 2022 that were not properly credited to her tax bill.
"I pay an extra fee for them because I want to know they got it; I don't want to mail a check," Thompson said.
"They stole my money," said Cecelia Johnson. She also got a dreaded IRS letter. Johnson provided a credit card statement showing payUSAtax took her $1,200.
Both women said they repeatedly called and emailed the company with no luck.
"One day when I was off from work, I stayed on hold for four hours to where it would not let me talk to anybody," Cecelia said.
"How come nobody will call us back?" Thompson said.
ABC15 Investigator Melissa Blasius called payUSAtax's customer service line last week and waited two hours on hold with no answer before their call center closed for the day.
Earlier this year, a reporter with the ABC station in Atlanta went to an office for payUSAtax's parent company, Catalis, seeking answers about the missing payments and customer service problems. Catalis owns Value Payment Systems, which runs the tax-paying website.
Afterward, a company executive looked into both women's situations, and a spokesman said both were resolved.
Thompson, who had paid through her PayPal account, had been able to get a refund within 30 days according to Catalis.
Hundreds of other customers complained to the BBB, and many said they had the same troubles - missing payments and difficulty in fixing the issue. A company spokesman, Eric Johnson, said they are working with the BBB to be responsive to all complaints.
As for the millions of payments they receive, payUSAtax said everyone is forwarded to the IRS and 99.9% land in the right account.
"Where there are issues, typically, it's because the taxpayer made it simple data entry error, like an incorrect social security number." Eric Johnson said.
PayUSAtax said it can't reroute misdirected payments, but it can make a report so the IRS can fix them. Customers can use payUSAtax's new payment verification page to find their tracking number called an EFTPS and share that directly with the IRS.
Catalis' Eric Johnson added they've struggled to staff their call center, but new workers are ready to start prior to Tax Day as long as the IRS approved their background checks.
"We're trying to find new ways and efficient ways to rectify the situation," he said. He advises customers to double-check their taxpayer information to ensure it's correct and matches their IRS filing information.
