IRS' Free File-Changes for 2007

[Bird Legs]

Filing Season, 2006 returns.
Since the IRS launched its Free File program in 2003 that links taxpayers to commercial
tax prep websites and software, consumer advocates have objected to the sale of refund
anticipation loans and other expensive ancillary products. Since Free File is accessed
through a government website [IRS], it was particularly appalling that RALs were given
an implied endorsement by the IRS. CFA, USPIRG, NCLC and CU opposed RALs on
Free File, among other privacy and security issues.

Today the IRS announced that the Free File program for 2007 will NOT include the sale
of RALs or other ancillary products [see link to press release below]. Taxpayers
who earn $52,000. or less will be eligible to use a Free File offer. That is 70% of
taxpayers. There has been controversy over why all taxpayers cannot file for free directly with the IRS and growing interest on the Hill for direct free filing as many states provide.

The IRS reports that only 6 percent of Free File users purchased an ancillary product but
that half of those said their purchase was not intended. Only half of one percent of
Free File users got a RAL last year.
News Release 2006-187, titled RALs Removed on Free File; 93 Million Eligible for Program

[Joe Btfsplk]

A similar article

I found this article on the internet. Not sure about the last sentence though.

The IRS will no longer include pitches for high interest refund loans alongside its e-tax filing service.

The loans let consumers immediately receive refund checks, but could sometimes carry high interest rates.

In its stead, e-tax filings this year will boast ads for bail bonds and as-see-on-tv home appliances