U S Audiotex LLC and the IRS Go Live With the Acceptance of Credit-Card Payments for 1998 Income-Tax Returns by Individual Taxpayers

Business Wire, Jan 27, 1999

SAN RAMON, Calif.--(BUSINESS WIRE)--Jan. 27, 1999--As of Jan. 15, individual taxpayers can pay the balance due on their 1998 Form 1640, 1040A or 1040EZ with their credit cards by calling 888/2PAY-TAX.

Credit-card payments are now available under an agreement between U S Audiotex LLC, an affiliate of Los Angeles-based Imperial Bancorp (NYSE:IMP), and the Internal Revenue Service (IRS).

Congress' passing of the Taxpayer Relief Act of 1997 granted the IRS authority to accept credit-card payments for federal income tax. Subsequently, the IRS undertook a comprehensive vendor-evaluation process that led to the awarding of this credit-card-processing agreement to U S Audiotex, as announced last August.

"We're obviously delighted to have been selected by the IRS to participate in such an innovative program," stated Ken Stern, founder and chief executive officer of U S Audiotex. "We believe that many taxpayers will welcome the opportunity to pay their income tax by credit card.

"The convenience and flexibility that are inherent with the credit card, coupled with the ease of use and accessibility of 888/2PAY-TAX, provide the taxpayer with a viable payment alternative to existing paper-based payment methods.

"For its part, we see the IRS benefiting from the paperless nature of credit-card payments, which, in concert with electronic filing, is the principal thrust of this new program. Also, by accepting credit cards, the IRS is providing the taxpayer with an inexpensive and convenient payment option," added Stern.

"We're pleased with the agreement between our affiliate, U S Audiotex, and the IRS," stated George L. Graziadio, chairman of the board, president and CEO of Imperial Bancorp.

"U S Audiotex has successfully been assisting hundreds of governmental agencies around the country through its one-of-a-kind Interactive Voice Response System. This agreement exemplifies Imperial's style of business, which is to provide innovative financial services and products to our customers," added Graziadio.

U S Audiotex charges a convenience fee to taxpayers who pay their income tax through this program. Fees that are traditionally associated with merchant acceptance of credit cards and borne by the merchant are covered by U S Audiotex, not the IRS. The Taxpayer Relief Act of 1997 precludes the IRS from incurring any costs associated with the acceptance of credit cards for the payment of federal income tax.

U S Audiotex also pays all processing and telecommunications costs in providing this service for the IRS and taxpayers. The U S Audiotex System is available to taxpayers seven days a week, 24 hours a day.

Taxpayers, using a touch-tone telephone, dial 888/2PAY-TAX and are connected to the U S Audiotex Interactive Voice Response (IVR) System. This computer system prompts the taxpayer (using the numeric keys on the touch-tone phone) to select "Federal Income Tax."

The system then prompts for information including the Social Security number and the amount of payment. The taxpayer is informed of the amount of the convenience fee and, if acceptable, is then instructed to enter the credit-card number and card expiration date.

The U S Audiotex IVR System performs an online authorization to verify credit and, upon credit verification, provides the caller with a confirmation number that the payment has been authorized by the credit-card issuer.

The taxpayer's Social Security number and payment data are transmitted by U S Audiotex to the IRS. Funds are electronically transferred to the IRS' financial agent. Credit-card information is not forwarded to the IRS.

The primary goal of the IRS program is to make it easier and more attractive for taxpayers to file electronically by offering an electronic payment option. Another benefit of the program is to couple credit-card payment with electronic filing in order to reduce the overall volume of paper that the IRS receives.

Taxpayers who file electronically, either through an authorized tax practitioner or with commercially available tax-preparation software, or who use the existing TeleFile program, are able to take advantage of this credit-card payment option.

U S Audiotex, a San Ramon-based company, was founded in 1986. It currently processes credit-card payments for more than 250 counties and cities throughout the country. In addition, U S Audiotex processes credit-card payments for the California Franchise Tax Board.

For more information about U S Audiotex and the IRS' credit-card acceptance program, visit the company's Web site at www.usaudiotex.com or www.8882paytax.com.

Imperial Bancorp, a diversified financial organization, was founded in 1968. Imperial Bank, the principal subsidiary, organized in 1963, serves midsized businesses by offering a wide range of financial services tailored to corporate customers, entrepreneurs and professionals nationwide. Imperial can be found on the Web at www.imperialbank.com.