In a significant development for tax services, Free File, Inc. (FFI) and the Internal Revenue Service (IRS) have solidified their ongoing collaboration through a new five-year memorandum of understanding (MOU). The agreement, which took effect on October 31, 2020, represents the seventh such partnership between the two organizations since their initial collaboration in 2002.

Two Decades of Service Innovation

The renewed agreement continues a nearly 20-year tradition of providing free online tax filing services to eligible taxpayers. Originally established as the Free File Alliance LLC in 2002, FFI has worked with the IRS to create a framework that offers digital tax preparation and electronic filing services through the IRS website.

This longstanding partnership has undergone several extensions and refinements over the years, including notable renewals in 2005 and 2009. The organizations' commitment to service improvement was further strengthened in 2012 when FFI obtained 501(c)(3) tax-exempt status, enhancing its ability to deliver social value through its programs.

Standardization and Technological Advancement

The IRS maintains an ongoing dialogue with FFI members regarding technical specifications for online tax forms, ensuring greater standardization and user-friendly interfaces. FFI participants have demonstrated particular innovation in developing commercial products that streamline tax processing while minimizing human error.

"The Free File program should serve as a showcase for tax-related innovation," an IRS spokesperson noted. The new MOU includes specific commitments from both parties to expand free, innovative services that enhance the taxpayer experience.

Looking Forward

During the five-year term of the current agreement, FFI and the IRS plan to accelerate technological adoption in tax services, aiming to make the filing process more accessible and efficient for all eligible users. This partnership not only builds upon two decades of achievements but also represents a significant step toward modernizing tax administration services for the digital age.