IRS Agreement Extends Free Web Tax Filing

About 70% of the nation’s taxpayers will be able to file their tax returns electronically for free, thanks to an agreement struck Tuesday between the Internal Revenue Service and the Free File Alliance, a group representing the bulk of the nation’s leading tax software companies.

The deal makes free filing available for about 93 million individuals -- about 15 million more people than in past years. However, the agreement also restricts the program to lower- and middle-income filers with simple returns.

In past years, even taxpayers with more than $100,000 in annual income could find a free-file option.

But in 2006, only those with less than $50,000 in adjusted gross income will be able to file free through the IRS.

-- Kathy M. Kristof