Tuesday, February 10, 2009

Now taxpayers can file online free regardless of income
IRS posts electronic versions of forms

By DAN RICHMAN






Do you want your federal income tax refund in eight to 10 days this year, rather than four to six weeks? Care to increase the odds that your return will be mistake-free?

Then file electronically. Taxpayers will have more electronic options this year than ever, the Internal Revenue Service said Wednesday.

This year, for the first time, all taxpayers can fill out and file their forms online at no charge. The service is available to any taxpayer, regardless of income level.

Through a program called Free File Fillable Tax Forms, available only through the IRS' Web site, taxpayers can enter tax data, perform basic math calculations, print their records, and then sign and file electronically.

Free File Fillable Tax Forms are electronic versions of hard-copy forms, designed for people who know which forms and instructions they need, David Williams, the IRS director of electronic tax administration, said at a news conference Wednesday.

Williams said he doesn't anticipate Free File Fillable Tax Forms will be heavily used.

"Evidence suggests most taxpayers are very unlikely to use the online-forms option, but a lot of people say you have to provide it, so we've worked with the private sector to provide it, for free," he said.

As an alternative, taxpayers with a 2008 adjusted gross income of $56,000 or less, regardless of filing status, can choose from 20 commercial tax-preparation programs. Using that software online through irs.gov is free.

This software differs from the Free File Fillable Tax Forms in that it guides users through a step-by-step interview, ensuring that they fill out the proper forms and get every deduction and tax saving to which they are entitled, Williams said.

To use those programs, or to learn more about them, see goto.seattlepi.com/r1248. That information will be available Friday.

This year, for the first time, there won't be a filing fee for returns prepared through some of those programs. In the past, some charged between $10 and $12 to file online.

"The companies have figured out there's no reason for that charge, and it's a bone in the side of filers," Williams said.

Taxpayers whose 2008 adjusted gross income exceeds $56,000 who want to use the more sophisticated interviewing software are, of course, free to buy it. It wasn't clear, though, whether they, too, will be allowed to file free. Many taxpayers grossing more than $56,000 hire tax professionals to prepare their returns.

The form

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