Intuit will offer these online tax preparation and electronic filing services to eligible households through its WebTurboTax product, a Web-based personal tax preparation solution that enables tax filers to securely and quickly prepare and electronically file their tax returns via the Internet. The product is easy to use and requires no tax knowledge or expertise. Using a simple question and answer method, it asks the user for relevant information and automatically prepares and files the tax return. Intuit will donate tax preparation and filing for both federal and state income tax returns by making the service available via Quicken.com, Intuit’s Web site, at the Internet address www.quicken.com/freedom.

"Millions of people already use our low-cost financial software on PCs and on the Internet to help them manage their financial lives," said Bill Harris, president and chief executive officer of Intuit. "The most effective way for us, as a company, to help bring these financial tools to more people is to make them available at no cost to people for whom even a low cost may be a barrier."

Harris, who became Intuit CEO on August 1, said, "The Quicken Tax Freedom Project is good for a large number of Americans, good for the government and good for Intuit. Those citizens who take advantage of this program will benefit from faster refunds and the accuracy of online tax preparation and electronic filing at no cost. And Intuit gains greater awareness of the benefits associated with the growing number of web-based financial solutions."

In announcing the program, Intuit noted that several key individuals in government helped inspire the initiative by challenging the public and private sectors to improve access to both electronic commerce and electronic government for all citizens. They include:

• The Honorable Charles O. Rossotti, Commissioner of the IRS
• Vice President Al Gore and his National Partnership for Government Reinvention
• Congressman Jim Kolbe (R-AZ), Chairman of the House Subcommittee on Treasury Appropriations
• Senator Bob Kerrey (D-NE), Co-Chairman of the National Commission on IRS Restructuring
• Congressman Rob Portman (R-OH), Co-Chairman of the National Commission on IRS Restructuring
• Congressman Christopher Cox (R-CA), Chairman of the House Policy Committee
• Senator Orrin Hatch (R-UT), Member of the Senate Finance Committee and Chairman of the Senate Judiciary Committee

The Quicken Tax Freedom Project is, in part, a response to requests from the IRS to the private sector to help it generate more electronically filed returns. The IRS has a publicly stated goal of increasing electronic filing from less than 20 percent of all returns filed today to 80 percent by 2007. And many state tax authorities have similar goals. Intuit hopes this program will significantly expand the availability and usage of electronic filing for both federal and state returns.

"Making electronic tax return filing more available is among our top priorities at the IRS, but we can’t do it alone," said Internal Revenue Commissioner Charles O. Rossotti. "We are encouraged when the private sector conceives of, and offers, innovative and inexpensive electronic filing services to the public."

"We are extremely excited about the Quicken Tax Freedom Project as the first of what we hope are other convenient and no cost options for more tax payers to file electronically," said Will Bush, Assistant Executive Officer of the California Franchise Tax Board, the largest state taxing authority in the nation. "Providing software and electronic services at no cost through the Internet is a great incentive for Californians to take advantage of the benefits of electronic filing. State government wins, too, since electronic filing reduces taxpayer errors and lowers processing costs."

Mitchell Adams, Commissioner, Massachusetts Department of Revenue said about the program: "We think this is a great idea. We’re always looking to streamline the tax filing process, provide better service and reduce cost. This project does all three. We applaud Intuit’s interest in making this benefit available — at no charge — to taxpayers who previously may have found it too costly."

Since many lower income households do not own a personal computer," Harris noted, "we are working with libraries, schools, senior centers, community centers and other public access facilities to provide the services to those without Internet access at home or work." Two-thirds of the nation's 9,000 public library systems now offer public access to the Internet at one or more outlets, according to the American Library Association.

Another example is SeniorNet which provides Internet access to seniors at 140 centers nationwide. "SeniorNet, the world's largest trainer of older adults on computer technology, applauds Intuit's effort to include all Americans in the digital revolution," said SeniorNet Executive Director, Ann Wrixon. "SeniorNet is especially interested in this project as lower income older adults are perhaps the most likely group to be overlooked when providing access to digital information."

All individual income tax filers with adjusted gross income of $20,000 and less will be eligible under the program. All major tax forms, including 1040EZ, 1040A and 1040 will be supported. Eligibility will be determined by users’ actual tax information entered in WebTurboTax. The services will be available from early January, 1999 to April 1, 1999, and will be extended thereafter if Intuit has sufficient capacity to continue the program through the end-of-tax-season peak.