Through the program, 70% of U.S. taxpayers are eligible to use commercial software for free to file their tax returns and almost all taxpayers can use free fillable electronic versions of paper forms to electronically file their tax returns,[3] though less than 5% of eligible individuals do so.
In 2019, investigations by ProPublica asserted that companies such as Intuit (makers of TurboTax) and H&R Block misled taxpayers into paying for tax preparation services despite qualifying under the Free File Program.
[4][5] Subsequent investigations by the Senate Committee on Homeland Security and Governmental Affairs and the New York State Department of Financial Services confirmed these findings.
In accordance with this OMB directive, the IRS began working in partnership with the tax software industry to develop a solution.
[13] In July 2021, Intuit announced that its TurboTax product would no longer participate in the Free File Program effective as of the 2021 tax season.
This initiative came as a result of the 2022 Inflation Reduction Act, signed into law by President Joe Biden.
However, the cumulative offers must allow 70 percent of U.S. taxpayers - approximately 100 million people - to be eligible for at least one product.
Most of the software products, but not all, use an interview format in which you are asked questions and your answers are used to populate the electronic form.
Alliance members cannot sell any refund anticipation loan products through the Free File service.
Once a taxpayer chooses a product, they will be directed off the IRS.gov site and onto the Alliance member's website to complete their federal tax return.
Free File Fillable Forms is best for taxpayers who are comfortable preparing their own tax returns or who have been long-time paper filers.