|
|
|
|
We have tons of info here. Use our Search function to find it
fast....
|
|
|
Article added or updated:
01/06/2008 |
More People Eligible For IRS Free Tax File for 2006
|
Related Articles:
2006 Tax Tips
Disaster/Theft Loss
Good Tax News
Charitable Donations
2006
IRS FreeFile '06
SUV TAX DEDUCTION LIST
S Corp vs. LLC - The Basics Explained
Self Employed
401k - The Basics Explained
RALs Removed on Free File; 93 Million Eligible for Program
IR-2006-187, Dec. 5, 2006
WASHINGTON — The successful and innovative Free File program launches
its fifth year in January with an agreement by private sector partners
to remove ancillary offerings such as Refund Anticipation Loans (RALs)
from the program.
Free File is a partnership between the Internal Revenue Service and the
Free File Alliance, a coalition of tax preparation software
manufacturers who make their software products available to eligible
taxpayers for free and provide free Federal return electronic filing.
The Free File software products are the same as their commercial
products.
|
|
|
For 2007, taxpayers who earn $52,000 or less will be able to find a Free
File offer for which they are eligible. This means 70 percent of all
taxpayers – 93 million people – will be eligible for Free File.
“We heard many legitimate concerns about the marketing of ancillary
products during the last filing season,” said IRS Commissioner Mark W.
Everson. “This is a constructive step.”
Free File Alliance Executive Director Tim Hugo said: "Each year, the
Free File Alliance has sought to improve a program that is now eligible
to over 93 million Americans. Today, with the voluntary elimination of
RAL's and ancillary products, the Free File Alliance takes another giant
leap forward on behalf of the taxpaying public."
More than 15.4 million tax returns have been prepared and submitted
through Free File since it debuted during the 2003 filing season.
Preparation and e-filing of federal tax returns have been free since the
inception of Free File. However, manufacturers have offered refund
anticipation loans and other products for which they charge a fee. RALs
use a taxpayer’s refund as collateral for a same-day, interest-charging
loan.
|
|
Taxpayers must enter Free
File through the IRS Web site. The Free File Alliance may still offer
customers the option of having their state tax return prepared for a
fee. Some Alliance members are offering the state return for free as
well.
Some alliance members also will provide free access to Form 1040EZ-T for
those people who have no legal obligation to file a tax return but who
can request the one-time telephone excise tax refund. In addition,
taxpayers can use Free File to file a Form 4868, Application for
Automatic Extension of Time to File. Some alliance members offer their
Free File software in Spanish.
The latest agreement to remove ancillary product offers improves on an
already solid foundation for the Free File program. Earlier this year,
taxpayers responding to a survey reported an overwhelming level of
satisfaction with the program.
According to the survey, 94 percent said they intend to use Free File
again next year, 94 percent said they found Free File very easy or
somewhat easy to use and 97 percent said they would recommend Free File
to others. Convenience, not the free cost, was the most appealing factor
of Free File.
Only 6 percent of the Free File users purchased an ancillary product
from a software provider, but half of those said that their purchase was
not intended. Also, IRS’ own data reveals that only 0.5 percent of the
Free File users requested a refund anticipation loan (RAL).
Russell Research, a market research firm contracted by the IRS,
conducted a telephone survey of 1,800 taxpayers who used Free File
during 2006. The poll was conducted during May and June of this year.
The typical Free File user was a 40-year-old woman (57 percent female/43
percent male) who prepared both federal and state tax returns with Free
File and had used Free File the previous tax year.
“This survey confirms what we’ve known anecdotally for four years:
taxpayers like Free File. This level of public satisfaction with Free
File is just astounding,” Everson said. “This innovative program
combines the best of the private and public sectors to provide real
value to the taxpayers. With this latest agreement, we’ve made a great
program even better.”
Related Articles:
2006 Tax Tips
Disaster/Theft Loss
Good Tax News
Charitable Donations
2006
IRS FreeFile '06
SUV TAX DEDUCTION LIST
S Corp vs. LLC - The Basics Explained
Self Employed
401k - The Basics Explained |
|
As always, please check with your tax professional,
CPA or lawyer
prior to acting on any advice found here. We do NOT dispense advice on
any articles contained here.
Legal Disclaimer
© Copyright 2003-2008 Please do not reproduce or copy without written permission.
SelfEmployedWeb. All Rights Reserved |
|
|
|
