New Va. Law Eliminates Free Online Tax-Filing Program

April 14, 2010

The state's free online tax-filing service will disappear under a new law that will shift the task to private businesses, who will be able to charge for the service.

Nearly 97 percent of Virginians who filed state taxes were eligible to file electronically under the iFile program. This year, about 300,000 are expected to do so by the May 3 deadline.

A Department of Taxation fiscal impact statement on the legislation shows iFile cost the state about $49,200 to maintain. It costs the department about $1 to process each paper return.

The law replaces the 10-year-old iFile with the "Virginia Free File" program, run by a group representing for-profit tax-preparation vendors, who will be able to charge fees to those making $57,000 or more.


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