The agency still offers a Free File program that works with commercial tax software firms. Some companies also offer free tools for certain filers.
Fears that AI will upend the much-loved software-as-a-service business model continue to fuel a selloff in the sector.
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Only 2% of federal income tax returns were filed through Free File, even though 70% of filers qualified for the service, according to NerdWallet analysis of IRS data.
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