Intuit And H&R Block Offer Tax Prep Software Free To All

by Mike Godfrey, Tax-News.com, Washington

04 February 2005

The makers of America’s two best-selling tax preparation software programs are giving away free copies of their software and filing services as part of the Internal Revenue Service’s initiative, known as the Free-File Alliance.

Under the Free File Alliance, established by the IRS in 2002 to encourage more widespread use of electronic tax filing, private companies can make their services available to eligible users through the IRS Free File website.

Eligibility for the scheme is normally dependent on the taxpayer satisfying certain income, age and state residency criteria, although the IRS requires that the Alliance provides free tax services to at least 60% of the US population.

However, according to reports, Intuit, maker of the TurboTax software, and H&R Block, which makes TaxCut, are offering their tax file services free of charge to anyone.

Previously, H&R Block only gave its filing services away for free to those earning less than $34,000 per year, but the firm decided to expand the offer in order to “remain competitive”, the Wall Street Journal reported.

Meanwhile, Intuit spokeswoman Julie Miller explained that the company is happy to participate in the Free File Alliance because it was “intended to be a philanthropic program that delivers online tax services to underserved and disadvantaged taxpayers”.

A total of 19 Web-based versions of federal tax preparation software and electronic-filing programs are available for free through the IRS.

Recommended