Law firm trolling for clients.

The IRS has agreed not to make online tax filing free as long as tax preparation companies, such as TurboTax and H&R Block, provided free services to taxpayers who make less than $66,000.

As part of the agreement, the companies are supposed to promote the free filing option to qualifying taxpayers.

According to a lawsuit filed by the City of Los Angeles, TurboTax and H&R Block intentionally prevented customers from using the free filing option.

Both TurboTax and H&R Block reportedly hid the free filing options even when they knew the customer qualified for free filing based on their answers. A former TurboTax manager explained, “[t]he entire strategy is make sure people read the word ‘free’ and click our site and never use” an actually free product."

The real crux of the matter is that many paid programs participate in the IRS FREE FILE option however at no time were they required to educate the public how to access the FREE FILE option on the IRS website.   So if you go to any of the paid sites and click on file for free then you are NOT in the IRS FREE FILE system so you can be required to upgrade if you no longer fit the free profile according to those paid sites. 

In my opinion ... the one to blame is the IRS ... they are the ones hosting the FREE FILE links and it is up to them to spend millions in educating the public on this available option. 

Also ... a couple of years ago the IRS changed the FREE FILE site to disallow the option to convert your started return to a paid site when it becomes apparent that the user no longer fits the filing parameters.   For instance if you believe you will be under the max income limit and start the return but then you wind up with more income than allowed you just cannot transfer the info to a paid version ... you are required to start all over again IN A NEW ACCOUNT in a paid version.  I understand why they did it but it is very inconvenient at best.