Fewer Ads for Free Filers

In a survey conducted by the IRS, 6 percent of Free File users bought something from participating providers. Of those, half said their purchases were not intended. DuMars said the IRS found that only 0.5 percent of taxpayers using Free File last year took out refund anticipation loans.

Still, consumer advocates were particularly disturbed about the marketing of refund-anticipation loans, or RALs, which are short-term loans -- typically seven to 14 days -- backed by borrowers' tax refunds. RALs cost about $30 to more than $125. Some tax preparers also charge a separate fee, often called an "application" or "document preparation" fee, of about $40, according to consumer advocates at the National Consumer Law Center and the Consumer Federation of America.

The fees for RALs, when expressed as an interest rate, can range from about 40 percent to more than 500 percent a year.

Every year, the two consumer groups launch campaigns to steer people away from the loans. The reduced advertising is a good step forward, said Jean Ann Fox, director of consumer protection for the CFA.

"A government Web site shouldn't be used to sell triple-digit interest rate loans to low-income workers," Fox said.

Not to mention that the loans are unnecessary. If you file electronically and have your refund deposited directly into your bank account, you get your money in two or three weeks.

Also new this year: Taxpayers will be able to use Free File to request the Telephone Excise Tax Refund. Some Free File companies will provide free access to Form 1040EZ-T for those people who aren't required to file tax returns but who are eligible for the one-time telephone excise tax refund.

Remember: To be sure you are using companies authorized to participate in the IRS program, you must go to http://www.irs.gov. Look for the "Free File" link.

· On the air: Michelle Singletary discusses personal finance Tuesdays on NPR's "Day to Day" program and online athttp://www.npr.org.

· By mail: Readers can write to her at The Washington Post, 1150 15th St. NW, Washington, D.C. 20071.

· By e-mail:singletarym@washpost.com.

Comments and questions are welcome, but because of the volume of mail, personal responses are not always possible. Please note that comments or questions may be used in a future column, with the writer's name, unless a specific request to do otherwise is indicated.