Interesting editorial in today’s Concord (NH) Monitor:  IRS Should Cut Out the Tax Filing Middlemen:

Wen the 2008 tax season rolls around, this is the ad we’d like to see:

"File your tax return electronically. No fees, no gimmicks, no sales pitches for retirement accounts, tax shelters, or offers of cash now in exchange for a small charge. Get your money back in half the time. File directly to the IRS."

In 2002, so as not to offend the delicate sensibilities of the tax preparation industry, the IRS cut a deal: It would not allow taxpayers to file directly over the internet if the tax preparation industry offered free filing to 70 percent of customers. The agreement, which prohibits the IRS from competing with private enterprise, must be renewed every two years. It shouldn’t be renewed again.