Free file program from IRS

Since 2003, the IRS has administered a Free File Program, under which low income taxpayers can file tax returns online, free of charge.

However, TaxProf Blog reported

The Treasury Inspector General for Tax Administration has issued a report slamming the IRS's Free-File Program, charging that the electronic-filing software is replete with errors that affect even the simplest tax returns.

Fairmark.com also has been complaining

We stopped recommending the program on this site when it became apparent that it's run for the benefit of private software companies, rather than for the benefit of taxpayers or even for the benefit of the IRS.

Its purpose is to discourage Congress from requiring the IRS to offer its own free, convenient method of preparing and filing tax returns online while at the same time discouraging taxpayers from actually using the program, so they will continue to buy software and services from private companies.

So far, it has succeeded on both counts...

I too found a major problem with IRS's Free File Program:

Many of its partners do not offer free file for state tax returns.

Taxpayers have to pay as much as half of the regular software price to file the state tax return.

It's no wonder that Free File Program accounted for only 3 percent of the individual income tax returns filed in 2006.