IRS in moves to encourage handouts

US tax authority moves to make it easier to claim 'stimulus payments' designed to boost the US economy.

Written by Alex Hawkes

Accountancy Age, 07 Mar 2008

The IRS has opened up a 'free file' programme for US citizens to file tax returns more easily, alongside a series of measures designed to encourage takeup of economic 'stimulus payments.'

US citizens can qualify for payments of between $300 (£150) and $600, depending on their income.

The US tax authority is opening up its filing system to enable people who do not normally file returns to do so easily.

'If you are only filing a return to receive your economic stimulus payment, Free File is a great option for you,' said acting IRS commissioner Linda E. Stiff.

'All you need to do is follow the simple instructions provided by the software. It's easy, and it's free,' Stiff was reported saying by WebCPA.com.

The IRS has already revealed it will not challenge $1 returns, filed for the purposes of receiving the payment.