Participation in free tax filing fell 22.7% in 2006

Participation in the Internal Revenue Service’s free electronic tax filing program fell 22.7% in 2006 after tax preparers imposed new income limits. The IRS’s Free File Alliance had 3.9 mln participants in 2006, down from 5 mln in 2005. The drop-off came as tax preparers placed a new $50,000 income limit for taxpayers to qualify for free computerized tax filing through the IRS’s Web site. Overall electronic tax filing grew by 18% in 2004.