IRS Extends Official Payments Corp. Contract for Online Tax Payment Processing

  
    
  
  
    
      Official Payments Corp.®, http://www.officialpayments.com 
      , a wholly owned subsidiary of Tier Technologies, Inc. (Nasdaq:TIER), http://www.tier.com, 
      today announced that the Internal Revenue Service (IRS) has extended its 
      electronic tax payment processing contract with Official Payments Corp. 
      This contract extends Official Payments’ 
      9-year relationship through November 2008.
    
    
      Since 1999, when Official Payments began processing federal tax payments 
      for the IRS, the company has processed over $7 billion in federal taxes. 
      Official Payments is the only company that has provided these services 
      continuously since the IRS began accepting credit card payments for 
      federal taxes. Payments may be made securely with an American Express®, 
      Discover®, MasterCard® 
      or VISA® card by visiting http://www.officialpayments.com, 
      or by calling 1-800-2PAY-TAX(SM) (1-800-272-9829).
    
    
      Through this service, individual taxpayers can make secure tax payments 
      for a variety of federal tax types including Balance Due, Estimated, 
      Extension, Installment Agreement, Prior Year, Advance Payment of a 
      Determined Deficiency and Trust Fund Recovery Penalty for both Prior Tax 
      Periods and Installment Agreements. In addition, businesses can make 
      credit card payments for business returns on Form 940 (Employer's Annual 
      Federal Unemployment Tax Return) for the Current Tax Year, for Prior Tax 
      Years and for Installment Agreements, Form 941 (Employer's Quarterly 
      Federal Tax Return) for the Current Tax Year, for Prior Tax Years and 
      for Installment Agreements and Form 944 (Employer’s 
      Annual Federal Tax Return).
    
    
      “Official Payments has a long history of 
      providing payment processing services to the IRS,” 
      said Ronald L. Rossetti, Chairman and Chief Executive Officer of Tier. “We 
      are delighted to continue this long-standing partnership, allowing 
      individual taxpayers and businesses to make federal tax payments 
      quickly, easily, and securely, online and over the telephone,” 
      continued Rossetti.
    
    
      Official Payments charges 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. Taxpayers are advised to 
      check with their card issuer for details. The IRS has determined that 
      convenience fees incurred by business taxpayers can be deducted as a 
      business expense.
    
    
      About Official Payments Corp.
    
    
      Official Payments Corp., a wholly owned subsidiary of Tier Technologies, 
      Inc., delivers innovative electronic payment processing services to 
      governments, businesses and consumers in throughout the United States. 
      Headquartered in Reston, Virginia, Official Payments’ 
      clients are comprised of nearly 2,700 federal, state, and local 
      governments and agencies including the IRS, educational institutions, 
      utilities and commercial clients. Since 1996, Official Payments Corp. 
      has enabled electronic payments to be processed faster and more 
      securely. For more information, visit www.officialpayments.com.
    
    
      About Tier Technologies, Inc.
    
    
      Tier Technologies, Inc. primarily provides federal, state and local 
      government and other public sector clients primarily with electronic 
      payment processing and other transaction processing services. Tier’s 
      electronic payment processing clients include over 3,000 federal, state, 
      and local governments, educational institutions, utilities and 
      commercial clients throughout the U.S. Tier is headquartered in Reston, 
      Virginia. For more information, see www.tier.com.
    
    
      Statements made in this press release that are not historical facts, 
      including statements regarding expectations for future revenues, 
      earnings, and expenses, are forward-looking statements that are made 
      pursuant to the safe harbor provisions of the Private Securities 
      Litigation Reform Act of 1995. Tier undertakes no obligation to update 
      any such forward-looking statements. For a discussion of the factors 
      which may cause our actual events or results to differ from those 
      projected, please refer to Tier Technologies’ 
      quarterly report on Form 10-Q for the period ended June 30, 2007, and 
      other reports filed with the SEC.