When using a debit or credit card to pay taxes due to the IRS, which statement is false?

The statement that the taxpayer can make Federal tax deposits with a debit or credit card is false because while taxpayers are allowed to use debit and credit cards for certain tax payments, Federal tax deposits (which are typically made by businesses for employment taxes and certain other tax types) must be done through specific electronic methods mandated by the IRS. These methods usually require the use of the Electronic Federal Tax Payment System (EFTPS) or other acceptable forms of electronic funds transfer.

On the other hand, the other statements reflect accurate information regarding the payment process. For example, overpayments can indeed result in refunds from the IRS once a return is processed, as this is a standard procedure for tax refunds. Additionally, electronic payments do remove the necessity for mailing physical vouchers, facilitating a more straightforward payment process. Lastly, the requirement for special coordination for high balance payments of $100,000 or greater highlights the IRS’s necessary precautions for managing large transactions effectively, ensuring compliance and security in high-stakes payments.