Intuit Inc. (NASDAQ: INTU) today announced its partnership with the Internal Revenue Service in launching the Free File Alliance, a public-private partnership that will provide free electronic tax preparation and e-filing to more than 60% of taxpayers. As part of its commitment to the Alliance, Intuit is donating its popular on-line product, TurboTax® for the WebSM, for free to every taxpayer with an adjusted gross income (AGI) under $27,000 as well as those who qualify for the federal Earned Income Tax Credit (EITC).
"The Free File Alliance is a great opportunity to show the power of public-private partnerships, but most of all, it's a huge win for consumers" said Steve Bennett, CEO of Intuit. "The government can now provide access to services for tens of millions taxpayers, especially those who need it most - low and moderate income American families - for virtually no cost. Intuit is pleased that taxpayers taking advantage of the Free File Alliance will be able to use TurboTax for the Web, our award-winning online tax preparation service, a name taxpayers have come to know and trust for easy, accurate tax preparation and e-filing."
Working with the IRS to create a pro-consumer partnership like the Free File Alliance builds on Intuit's long-standing commitment to provide free service to low and moderate income tax filers. For the past five years, Intuit has donated TurboTax for the Web to millions of deserving consumers through the Intuit Tax Freedom Project. In that time, the Intuit Tax Freedom Project has been used to process more than five million federal and state tax returns.
Through the Alliance, taxpayers visiting the IRS web site click on the Free File option to be taken to a special web page that outlines what free offerings are being made available to consumers by more than a dozen electronic tax software companies. While Intuit is offering free tax preparation and e-filing service based on income and EITC eligibility, other companies have other criteria upon which they base their free use offering. Consumers will then pick one of the companies under whose offering they qualify for free use, and be taken to that company's web site to prepare and e-file their tax returns.
The Ease of Filing Online
This partnership will introduce millions of Americans to the benefits of electronic tax preparation and filing. Intuit is also hopeful that many state governments will adopt the Free File Alliance model, so that taxpayers using free Alliance software to prepare their federal tax returns will also be able to prepare and e-file their state tax returns at the same time. Intuit, stands ready to extend the benefits federal filers are going to receive through the Alliance to taxpayers in every state.
The Alliance will offer tens of millions of taxpayers all the benefits of filing electronically: simplicity and saved time in their tax preparation; software, like TurboTax, that works with them to provide every opportunity for exemptions they may be entitled to; and more accurate and secure tax return filing. There will also be faster refund distribution by the IRS through electronic filing: people who once filed on paper and waited 8 weeks for a refund can now file for free online and see their refund check in as little as 10 days. To access these benefits, taxpayers need to go to the IRS web site (www.irs.gov) or the Intuit Tax Freedom Project web site (http://www.taxfreedom.com/) to access the Free File Alliance and Intuit's offer of free online tax preparation.
About TurboTax
In its 19th tax season, TurboTax was the No.1-selling tax preparation software program in 2001, with 71 percent share of units sold at retail according to NPD Intelect. Its Web-based counterpart, the TurboTax for the Web service, is the most popular site for online tax preparation and filing services. With more than 19 years of personal finance expertise, the TurboTax family of products saves time and money for more than 15 million Americans each year.
