The partnership between the IRS and the Free File Alliance, the consortium of tax preparation software companies, provides free tax software and free electronic filing for middle- and low-income taxpayers -- those with an adjusted gross income of $50,000 or less, but each company sets its own criteria

A new agreement between the IRS and the Alliance resulted in a few changes this year. For instance, the three million taxpayers who used to file their income tax return through TeleFile, an option no longer available, automatically qualify for Free File this year. Alliance members who offer refund anticipation loans (RALs) must disclose fees and interest rates upfront and must make clear that RALS are loans, not tax refunds. Taxpayers also must consent to receive additional information about ancillary financial products. Additional tax forms will be provided by Alliance members, such as Form 4868 that allows for automatic extensions of time to file. And Alliance members' Web sites will display whether state online tax preparation and filing services are available and the associated fees, if any.

For 2006, taxpayers with access to a computer and the Internet may check on IRS.gov to determine if they will qualify for Free File. Taxpayers do not have to purchase any product in order to qualify for the free services.

More than five million taxpayers used Free File last year, almost a 47 percent increase over 2004. Free File debuted in 2003 with nearly 2.8 million users.