The Internal Revenue Service has agreed it will not provide its own direct tax return filing. That is one of the provisions of a five-year agreement between the The current agreement was a one-year extension of the program. The new deal runs from October 31 this year, through Oct. 31, 2020. The announcement said the agreementl would provide greater transparency regarding any charges associated with state return preparation.
For the Free File program for 2015, those with incomes of $60,000 annually or less are eligible to receive free tax software. Taxpayers can receive brand-name tax software or fillable form options. Those with higher incomes can receive Free File Fillable Forms, the electronic version of IRS paper forms. Free File also provides free tax extensions with no income limitations.
Under the new agreement, tax software vendors will be encourage to import prior-year tax return information and information returns such as Forms 1099. The Alliance agreed to ensure free federal and state returns from IRS.gov for 21 states and the District of Columbia that have partnerships with Alliance members. Members are not required to provide free state returns for all states, although some currently provide that service.
The IRS.gov site will provide more information about the Free File states and the companies that offer free state return preparation. Those that charge for state returns must display fees on the landing pages.
Companies can also expand their Free File offer to active duty military personnel with no income cap set.