FROM THE OFFICE OF PUBLIC AFFAIRS

Good afternoon. Thank you all for joining us here today. I would like to thank OMB Director Bolten, IRS Commissioner Everson, and Mike Cavanagh with the Free File Alliance for joining me today as we launch the second year of "Free File".

The IRS's Free File Web site features private-sector software partners, the Free File Alliance, and allows most taxpayers to prepare and file their taxes online for free. 
A substantial majority of citizens are eligible to use this innovative service at www.irs.gov.    Free File is an exciting development in our efforts to make government more productive, efficient, and taxpayer-friendly.   It furthers the President's vision and expectation that the government be run in a more businesslike manner.

Make no mistake--no one likes paying taxes—it’s too confusing and too time consuming.   But Free File makes this onerous task a good bit easier and less burdensome.  Free File is an easy, fast and secure way for citizens to file taxes, and also allows Americans to get refunds in half the time. The efficiency of Free-file saves both taxpayers and the IRS money.

I would like to thank all of our Free File Alliance Members for their participation in providing millions of Americans the opportunity to file their taxes on line for free, and their commitment and efforts in improving the Free File system for the benefit of our customers--the taxpayers.

While tax simplification remains our goal, Free File incorporates a variety of features that reduce errors arising from the vast complexity of the tax code.  In our technologically advanced economy, electronic transactions are everywhere.  With this effort, the federal government is finally catching up to the nation we strive to support. 

Last year, the IRS received 2.8 million e-filed returns through sixteen Free File Alliance members—this surpassed initial projections. This year, I hope that millions more will take advantage of Free File.  

To encourage even more Americans to electronically file their taxes, the President’s FY ’05 budget will contain a proposal to extend the April filing date for electronic returns by fifteen days, to April 30th. This will give taxpayers a little extra time to get their affairs in order around tax day as an added inducement to e-file.  

Congratulations to all at the IRS, and all the businesses involved in the Free File Alliance, for an important contribution to the future of the United States Government.