Taxpayers Can Pay Federal Taxes Electronically via Official Payments Corp

Business Wire, Feb 14, 2005

STAMFORD, Conn. -- OPC Now Processing Electronic Tax Payments for 25 States and the District of Columbia Through Its Proven, Trusted and Convenient Systems

Taxpayers can use their VISA(R), American Express(R), Discover(R) or MasterCard(R) to pay federal taxes and tax obligations in 25 states and the District of Columbia by visiting www.officialpayments.com or calling 1-800-2PAY-TAXSM.

These online and telephone payment options are available through Official Payments Corp.(R) (OPC), a wholly owned subsidiary of Tier Technologies, Inc. (Nasdaq: TIER), in association with the Internal Revenue Service (IRS) and the respective district and state agencies.

OPC offers the ability to transact both federal and state payments quickly in one session for the IRS, 25 states and the District of Columbia. All taxpayers can take advantage of the convenience, rewards and cash management benefits of OPC's service, including paper filers, electronic filers, those who use tax-preparation software and those whose returns are prepared by accountants. Rewards programs vary depending on credit card companies' rules, and consumers should check with their card issuer for details.

"Official Payments Corp. pioneered taxpayer electronic payment services - since 1999 we have been authorized by the IRS for safe, secure payment processing," said James R. Weaver, Chairman and Chief Executive Officer of Tier Technologies.

"In our seven years of partnering with the IRS, we have consistently increased our payment offerings. For example, last year was the first year the IRS authorized OPC to accept payments for prior year taxes. For 2005, enhancements include expanding the tax years for which prior tax year payments may be accepted."

Official Payments Corp. also recently introduced AutoPay, a new automated payment feature that will automatically pay recurring, fixed amount payments. Through a simple set-up process, registered users designate the payment type, payment amount, provide their credit card number and desired payment dates, and Official Payments will automatically make payments on their behalf, on the dates specified. This convenient new service will remind users by email that a scheduled payment is pending and will send a confirmation email following each successful automated payment. AutoPay is currently available to federal income taxpayers who have a pre-established IRS Installment Agreement payment plan.

Federal Payment Details

Federal taxpayers can make balance-due, balance-due notice, prior tax year, estimated, extension and installment payments as listed below:

--Form 1040 (All 1040 Form types, including TeleFile) Balance Due - Tax Year 2004

--Balance Due Notice Payments for Tax Year 2004

--Prior Tax Year Form 1040 - Tax Years 1995 through 2003

--Form 1040ES Estimated Payment - Tax Year 2004 (Ends January 31, 2005)

--Form 1040ES Estimated Payment - Tax Year 2005 (Starting March 1, 2005)

--Form 4868 Automatic Extension to File - Tax Year 2004

--Installment Agreement Payments Form 1040 for Tax Years 1995 through 2004

State Payments Options

Taxpayers can also use OPC's electronic payment options in 25 states and the District of Columbia. For a complete list of payment types available by state, visit www.officialpayments.com.

"Taxpayers who use OPC's electronic payment options consistently cite convenience, rewards, and cash management as their reasons for doing so," said Weaver. "Payment is easy and effortless - it's all taken care of quickly and conveniently online or over the phone. Some taxpayers want to take advantage of their credit cards' rewards programs. And some taxpayers appreciate the flexibility electronic payments afford them in fulfilling their tax obligations."

OPC charges taxpayers a convenience fee for the service. Taxpayers using credit or debit cards with bonus rewards programs may, depending on their card's program, earn reward points, airline frequent flyer miles or cash back for paying their taxes and fees. Rewards programs vary depending on credit card companies' rules. Taxpayers are advised to check with their card issuer for details.

About Tier

Tier is a leading provider of transaction processing and packaged software and systems integration services for public sector clients. We combine our understanding of enterprise-wide systems with domain knowledge enabling our clients to rapidly channel emerging technologies into their operations. We focus on sectors that we believe are driven by forces that make demand for our services less discretionary and are likely to provide us with recurring long-term revenue streams. Tier is included in the Russell 3000(R) Index. More information about the Company is available at www.Tier.com.

Statements made in this press release that are not historical facts are forward-looking statements that are made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995.

Each of these statements is made as of the date hereof based only on current information and expectations that are inherently subject to change and involve a number of risks and uncertainties. Actual events or results may differ materially from those projected in any of such statements due to various factors, including but not limited to failure by end consumers to make payments with credit or debit cards or electronic checks through Official Payments Corporation; impact of lower transaction volumes than anticipated; the potential loss of funding by clients, including due to government budget shortfalls or revisions to mandated statutes; the timing, initiation, completion, renewal, extension or early termination of client projects; the Company's ability to realize revenues from its business development opportunities; and unanticipated claims as a result of project performance, including due to the failure of software providers or subcontractors to satisfactorily complete engagements.