IRS expands electronic preparation

WASHINGTON — The IRS took some of the sting out of an annual tax chore Tuesday and made free tax preparation programs available to virtually every taxpayer through a partnership with software companies.

The arrangement lets taxpayers avoid the cost of buying sophisticated tax preparation software and fees charged for electronic tax filing.

This marks the last year, however, that taxpayers can use the telephone as a paperless filing method. The IRS plans to end the TeleFile program, available to taxpayers with simpler returns, because of shrinking demand and a tightening budget.

“The number of people using it continues to go down between 7 and 10 percent a year,” said Bert DuMars, IRS director of electronic tax administration. “It’s become the most expensive tax return process we have at this point.”

Taxpayers who opt to go online and use the free electronic filing program can browse 15 or more options, all tested for security and accuracy by the IRS. The IRS does not endorse any of the tax products or other services offered by participating companies.

At least three companies offer free tax preparation and electronic filing to everyone this year. Other participating companies require taxpayers to meet qualifications by age, income, military service or other factors.

“More people than ever are going to be able to use it,” DuMars said.