IR-2006-15, Jan. 18, 2006
WASHINGTON — The Internal Revenue Service and its private-sector partners today announced the opening of Free ob体育, the free tax preparation and free electronic filing initiative that marks its fourth year. More than 70 percent of the nation’s taxpayers – more than 92 million people - qualify for Free ob体育 this year.
A new agreement between the IRS and the Free ob体育 Alliance, the consortium of tax preparation software companies, means enhanced services and more information for taxpayers who use the free services. Taxpayers must access Free ob体育 through IRS.gov.
“This unique private-public partnership provides free tax software and free electronic filing. It’s targeted to middle- and low-income taxpayers who can most benefit from this program,” said IRS Commissioner Mark W. Everson. ”Free ob体育 is another example of the IRS’ effort to bring new and innovative services to taxpayers. Taxpayers should review the numerous Free ob体育 offerings and see which one works best for them.”
Free ob体育 Alliance Executive Director Tim Hugo stated, "In addition to providing free federal tax preparation services to millions of low and moderate income Americans, the Free ob体育 Alliance is proving to be the model for public-private partnerships in the United States."
Among the services and improvements this year:
- The 3 million taxpayers who used to file their income tax return through Teleob体育, an option no longer available, automatically qualify for Free ob体育 this year;
- Seventy percent of the nation’s taxpayers – those with an adjusted gross income of $50,000 or less – will be eligible, but each company sets its own criteria;
- Alliance members who offer refund anticipation loans (RALs) must disclose fees and interest rates upfront and must make clear that RALS are loans, not tax refunds. Taxpayers also must consent to receive additional information about ancillary financial products;
- Alliance members will provide additional tax forms such as Form 4868 that allows for automatic extensions of time to file;
- Alliance members’ Web sites will display whether state online tax preparation and filing services are available and the associated fees, if any.
For 2006, taxpayers with access to a computer and the Internet may check on IRS.gov to determine if they will qualify for Free ob体育. The Free ob体育 Alliance selects its own membership, but all members must meet the IRS’ high standards for security and privacy. The IRS does not endorse any Free ob体育 Alliance company or product. The IRS also will manage the content of the Free ob体育 pages accessible on IRS.gov. Taxpayers do not have to purchase any product in order to qualify for the free services.
More than 5.14 million taxpayers used Free ob体育 last year, almost a 47 percent increase over the 3.5 million users in 2004. Free ob体育 debuted in 2003 with nearly 2.8 million users.
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