Free Files are services available through the Internal Revenue Service (IRS) that allow U.S. taxpayers to set up and send electronically their federal tax returns. Free files provide two options for taxpayers: Free File Software (filed via brand-name software, adjusted gross income must be less than $ 66,000), or Free File Form (any level of income, filed through a form that can be filled in by online). Both Free File Software and File Services Filled Free Files are managed and operated by Free File Alliance, a consortium of private tax preparation companies. This service is available through the IRS website at www.irs.gov/freefile. Although the service is accessed through the IRS website, this service is not managed or operated by the IRS.
More than 46 million people have used Free Files since their debut in 2003. For 2016, the IRS Free File will be available from January 15th to October 15th.
Video Free File
History
In November 2001, the Task Force Quicksilver Office of Management and Budget (OMB) established 24 e-government initiatives that are part of the President's Management Agenda. The initiative is designed to enhance the ability of governments to Government, Government to Business, and Government to Citizen.
One initiative, IRS Free File, instructs the IRS to provide taxpayers with free and secure online tax refund and preparation. In accordance with this OMB instruction, the IRS began working in partnership with the tax software industry to develop solutions. The result is the establishment of the Free File Alliance, LLC, a group of tax software companies that provide free commercial online tax preparation and electronic filing services.
Maps Free File
Free File Alliance
The Free File Alliance is a consortium of 13 commercial tax preparation software providers who offer their brand name-free tax software products. Each member is permitted to establish eligibility requirements for their software product. However, the cumulative bid should allow 70 percent of US taxpayers - about 100 million people - to qualify for at least one product. Each year, the income limit for eligibility is adjusted to reach 70 percent of taxpayers. Income limit for 2016 is set at $ 62,000. An agreement between the IRS and the Free File Alliance is available to the public. The last Memorandum of Understanding was signed in 2015 and runs until 2020.
Free File Software
One component of Free Files is the Free File Software program, which allows low-income taxpayers to use brand name tax-making software to prepare and submit tax forms for free.
For 2016, anyone whose adjusted gross income is $ 62,000 or less will qualify for at least one software product. There are 13 products to choose from. Each software provider determines its own eligibility requirements, generally related to revenue, state residency, age, military service, or eligibility for income tax credits earned. Free files are free for federal tax refund only. However, some Free File Alliance members offer free or no-cost country return software. Most software products, but not all of them, use an interview format where you are asked questions and your answers are used to fill out electronic forms. This format helps taxpayers get their tax credits and deductions mature. It also means the taxpayer does not have to be an expert in the income tax law. Alliance members can not sell loan products in anticipation of refunds through the Free File service. Alliance members are limited in how many times they can offer to sell other products.
To use IRS Free Files, the taxpayer must go through the IRS website at www.irs.gov/freefile. There, taxpayers can find software tax software one of two ways. They can review the list of companies and their offerings. Or, they can use a simple web tool that asks a few questions - like revenue, country residency and age - and this tool will find the software product that the taxpayer qualifies. Once the taxpayer chooses a product, they will be directed to the IRS.gov site and log in to the Alliance members website to complete their federal tax return. All Alliance members use the latest technology to safely protect taxpayer information and send back to the IRS.
References
External links
- http://www.freefilealliance.org/
- http://www.irs.gov/FreeFile
- free_file_agreement - irs.gov
- Free File Software Offer - irs.gov
- Free File Search Tool - irs.gov
- Free Files: Everyone Can File Extensions for Free - irs.gov
- Free Files: Is Your Federal Tax Free - irs.gov
Source of the article : Wikipedia
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