Tax prep companies are coming to grips with an age-old business convention: Once you give it away for free, no one will want to pay for it ever again.
The industry is offering more free online options for do-it-yourself tax filers, providing financial relief to cash-strapped consumers but also triggering data security and privacy concerns.
Free e-filing of federal tax returns has been around for years. The companies that offered the service generated revenue by charging extra for more complex forms and state tax filings. Innovations were slow as tax prep companies enjoyed hefty profit margins on consumers willing to pay $40 or more for their annual tax obligation.
Roger Yu | USA TODAY