Online tax preparation services are using the Internal Revenue Service's Free File program to promote "get rich quick" schemes and overpriced refund anticipation loans to low-income taxpayers, some lawmakers have charged.In a sharply worded letter to IRS Commissioner Mark Everson, Senate Finance Committee chair Chuck Grassley, R-Iowa, placed much of the blame for these practices on the IRS officials who negotiated a new contract with 20 online tax prep companies to provide taxpayers with free electronic tax preparation and filing services during this tax season.
"I'm not confident that the IRS put taxpayers first when negotiating the latest Free File agreement," Grassley told Everson. "I'm also worried that the IRS isn't providing enough protection for taxpayers" from the misleading marketing tactics employed by some in the Free File Alliance.
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