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IRS Free File program without RAL

IRS and private sector tax software vendors partnered again for Free File program for 2007. As part of the agreement they will not be allowed to provide notorious Refund Anticipation Loans (RALs). 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.

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. There has been controversy over why IRS is not allowing free filing of taxes as many states do now.

Generally a taxpayers who earn $52,000 or less will qualify for Free File and some provider offer even more services.