IRS SAYS YES TO CREDIT CARDS

Americans have pretty much accepted credit cards -- plastic money -- as a way of life. They have discovered the convenience of using credit cards rather than writing checks or carrying large amounts of cash. Banks have promoted the use of electronic transactions as a way to cut costs.

And, thankfully, a strong economy has helped to slow the pace of bankruptcies that had been fueled, at least in part, by easy credit and the misuse of credit cards.

Now the IRS has entered the credit-card era. When American taxpayers who file electronically submit their returns next year, they will for the first time be able to pay any taxes owed by credit card. This move goes hand in hand with IRS efforts, started several years ago, to get more taxpayers to file electronically. Some 24.5 million returns were filed electronically in 1998.

Come local governments already have set up tax payments by credit card. In Arlington County, Va., about 10 percent of the taxpayers used credit cards in 1997. This has meant less paperwork, and the taxpaying process has been speeded up substantially.

Not everyone will want to pay taxes using a credit card. But for those who like the convenience and speed, it appears to be a good option.