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Published: March 5, 2008
Questions and Answers with Bill Hardekopf
Q : Many credit card issuers promote credit cards as a way to pay your taxes. Is this a good idea?
A : With one exception, it's a bad idea. The convenience isn't free. To process credit card payments, the IRS uses third-party service providers, which typically charge 2.49 percent. If you pay the IRS $10,000 through one of these providers, your fee will be at least $249.
If you carry a balance, you'll owe m...
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