Free File Opens January 16th, 2007

These are a few important points you should know before starting the Free File process.

 

• Free File is a free service offered by companies for taxpayers with an Adjusted Gross Income (AGI) of $52,000 or less.

• Carefully review the free offer descriptions before selecting a company.

• Individual company offers may be limited to specific states and income levels. 

• Fees for state income tax return preparation and e-filing services may or may not apply.

• You are under no obligation to buy any products or services.

• Do you need to prepare and file an extension?  Some companies offer Free e-filing of Extension Form 4868, Application for Automatic Extension of Time To File U.S. Individual Income Tax Return

• For more details about a company's services, access the company's website.

 

Taxpayers who used Free File in past filing seasons might not qualify for the free services for their tax year 2006 income tax return.  Participation in the Free File program is limited to taxpayers with an Adjusted Gross Income (AGI) of $52,000 or less.  

 

Free Services provided by commercial companies

Members of the tax software industry (i.e., Free File Alliance, LLC) provide these free tax preparation and electronic filing services - not the IRS. Once you choose a particular company, you will be sent directly to the company's commercial website. Any questions about a particular service or company should be directed to the company providing the free service and not the IRS. Please contact the company to resolve your particular income tax issue. To find out how to contact the company, please refer to the company's website for more information about their customer service options.  Companies associated with the Free File Program are affiliated with the Free File Alliance LLC, a non-profit organization.  IRS does not promote or endorse any specific programs or products associated with this program.

 

The government believes that private industry, given its established expertise and experience in the field of electronic tax preparation, has a proven track record in providing the best technology and services available. In addition, the government believes a partnership with private industry will: provide taxpayers with higher quality services by using the existing expertise of the private sector; maximize consumer choice; promote competition within the marketplace; and meet objectives in the least costly manner to taxpayers.

 

When choosing a company, be sure to link to the company’s website through IRS.gov

By going directly to a company's website and not through IRS.gov, you may be charged a fee. To find out more about each company’s pricing policies and fees, refer to pricing information on the company's home page.

 

You are under no obligation to buy any additional services

During the course of preparing your free file tax return, you may choose to browse other products and services that some companies may provide for a fee. You are under no obligation to buy additional products and services. The decision to buy these services is entirely up to you.

 

You do not need to buy these products or services as a condition for preparing and e-filing your federal income tax return for free. As long as you meet the company’s free offer criteria, you may simply prepare and e-file your federal return for free.

 

You may exceed eligibility criteria after selecting a company
You may determine after you start preparing your tax return with a particular company you are not eligible for the company's free service and you may be subject to a fee.

 

If this notification occurs you have the following options:
 

1. Return back to the IRS' Free File homepage and review the list of companies and their services and select another company you may qualify for;
 

2. Choose a company to complete your return but take note of the fee displayed on the company's website; or

 

3. Visit the IRS e-file Partners for Individual Taxpayers web page to view additional low-cost e-file opportunities.
 

For example, if you select a company whose free services are provided to individuals with an Adjusted Gross Income (AGI) of $26,000 or less and, based on your tax data, the company determines your AGI exceeds the $26,000 limit, you will be notified you may be subject to a fee. It is important you understand each of the company's eligibility criteria before selecting a company.

 

Your tax information and data will be protected -- Privacy and Security concerns

• Tax return preparation is accomplished using proprietary software approved by the IRS; transmittal is through the established IRS e-file system.

• Each company must attain a third party privacy and security certification.

• Alliance companies must comply with all federal rules and regulations on taxpayer privacy for paying and free customers. These rules prohibit use of tax return data for purposes not specifically authorized by the taxpayer.

• The IRS monitors the progress of each of the companies. If any problems develop, the companies are required to alert the IRS. If appropriate, the IRS will remove the company from the IRS.gov site until the problem is resolved.

      

IRS Tax Articles and Information