IRS wins approval for free online tax filing system

The Justice Department has approved a plan for private-sector companies, in conjunction with the Internal Revenue Service, to offer free, online tax-filing services to some U.S. citizens.

Charles James, the assistant attorney general for Justice's Antitrust Division, granted permission to tax-filing services to form the consortium for electronic tax-preparation services.

"This innovative public-private partnership between providers of electronic tax services and the IRS promises to make free, electronic tax preparation and filing services more readily available to individual taxpayers," James said in a Monday statement.

Justice reviewed the proposal for potential antitrust concerns.

Under the plan, participants can continue offering their own services independently of what they offer through the consortium. But the group must ensure that at least 60 percent of taxpayers receive the service for free.

The IRS ultimately will offer a Web site linking to the free services.