As of January 12, 2001, the IRS will begin accepting online payments for Form 1040 income taxes, Form 1040ES Estimated Payments, and Form 4868 extensions of time to file tax returns. Everyone who files a tax return will be eligible to pay online by credit card at www.officialpayments.com.

The option will not be free, however. Fees to pay online will vary by the amount of tax due, and can range from three dollars to thousands of dollars. Several states have also joined the site and authorized payment of state taxes online. These include California, Connecticut, Illinois, Maryland, Minnesota, New Jersey, Oklahoma, and Washington DC.