A group of former Intuit employees have launched TaxNet.com, which provides Internet-based filing of income taxes, along with electronic filing.

Headed by Tom Allanson, a former senior vice president and general manager of Intuit's consumer tax group, TaxNet is offering free filing of federal 1040 forms starting in the next tax season. However, the company is charging for both state tax preparation and e-filing.

The company, which includes two other Intuit alums, David Murray and Fred Grant, began operation in January. It started with two storefront tax preparation locations and intends to open more storefronts. But that effort will take a back seat for a while to the development of the online service.

TaxNet offers e-filing for $9.95. State 1040s are $19.95 each and refund transfers are $9.95. Preparation of the 1040A, EZ and Long Form are free.

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