IRS offers free tax prep and E-filing. The Free File program is a free federal tax preparation and electronic filing program for eligible taxpayers developed through a partnership between the Internal Revenue Service (IRS) and the Free File Alliance LLC, a group of private sector tax software companies. Since Free Files debut in 2003, more than 15.4 million returns have been prepared and e-filed through the program.

Free File allows taxpayers with an Adjusted Gross Income (AGI) of $52,000 or less in 2006 to e-file their federal tax returns for free. That means 70 percent of all taxpayers 95 million taxpayers can take advantage of the Free File program.