The IRS recently announced that it had teamed with 17 private tax-software providers to offer up to 78 million taxpayers free electronic preparation and filing.

Across the country, 60 percent of all taxpayers are expected to qualify for the IRS's new Free File program.

Some consumer advocates have expressed concern that the companies will try to sell taxpayers who use Free File additional services, such as refund anticipation loans. Some of the companies will offer such services for a fee, Lutes said.

But consumers don't have to bite.

"They should look at the information on the front page" to understand how the service works, he said.

While using the service, taxpayers also are reminded that they are dealing with private companies.

Taxpayers should review the companies' privacy policies, Lutes said, because in some cases it's possible companies might share registration or contact information, he said.

"That is no different than the taxpayers who are paying these companies anyway," he said.

But information about the returns is confidential, he said.

"Anyone providing the service can make no use of that return data without the explicit consent of the taxpayer," Lutes said.

About 640,000 taxpayers checked out Free File in the first week. About 500,000 visitors clicked to a company site, Lutes said.

Eligibility requirements can be found at www.irs.gov.

To use the program, taxpayers go to the Web site and click on the "Free File" icon on the front page. That link will take them to a site about the Free File program and to a list of the 17 companies, after clicking on "Start Now."

Taxpayers can either browse each company's offering or input information that will help determine which company will be of most help, Terry Lutes, director of electronic tax administration, said Monday.

-- Deb Gruver