Public-Private Partnership between Tax Software Industry & IRS Will Continue Successful Campaign Providing Free Tax Prep & E-Filing Services for 70 Percent of Taxpayers
WASHINGTON, D.C. (May 21, 2014) – The Free File Alliance, a nonprofit coalition of industry-leading tax software companies partnered with the IRS, today announced that it has signed an agreement with the IRS to continue offering online tax preparation and e-filing services at no cost. The memorandum of understanding between the Free File Alliance and the IRS continues the Free File program through the 2015 tax season. In addition, the Free File Alliance and the IRS will begin discussions with the goal being to negotiate a multi-year agreement by December 1, 2014.
Since its inception in 2003, the Free File Alliance has been committed to offering 70 percent of taxpayers – currently those with an adjusted gross income of $58,000 or less – the ability to prepare, complete and e-file their federal tax returns at no cost. Through the program, leading commercial tax preparation software from Free File Alliance member companies is available at www.IRS.gov/freefile. Basic federal e-filing services, called Free File Fillable Forms, are also available regardless of income level.
“For more than a decade, Free File has advanced the IRS’ e-filing initiative by making industry-leading tax software available to a majority of Americans at no cost,” said Tim Hugo, executive director of the Free File Alliance. “Free File is the epitome of a successful public-private partnership. We have saved taxpayers an estimated $1.3 billion in preparation and filing costs, while introducing millions of Americans – many of whom could not otherwise afford tax software – to the efficiency and ease of e-filing. The Free File Alliance looks forward to continuing to serve taxpayers next year and beyond.”
Before Free File began in 2003, free tax software offerings were not consistently available and were subject to modification or discontinuation from year to year. Free File Alliance member companies have continually worked with the IRS to strengthen the Free File program, and taxpayers have consistently reported that it is user-friendly and efficient. Responding to a 2009 IRS survey, 96 percent of users said they found Free File easy to use, while 98 percent said they would recommend the program to others.
About the Free File Alliance
The Free File Alliance, a nonprofit coalition of 14 industry-leading tax software companies, has partnered with the IRS since 2003 to help low and middle-income Americans prepare, complete and e-file their federal tax returns online. The Free File Alliance is committed to giving 70 percent of Americans free access to the industry’s top online tax preparation software. More than 40 million returns have been filed through IRS Free File since its inception. For more information, visit www.freefilealliance.org.
