Yes, free Internet fax is possible. Use these 2 services to send free faxes. They both place ads on the first page unless you pay a small amount to remove the ads. With each you can upload a document or enter text to fax.
FreePopFax
FaxZero – max 3 free pages
The service I use to receive free faxes is eFax.
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I have been using internet fax services for approximately two years now and I absolutely recommend that you give it a try for yourself. It is convenient, easy to use and saves time and money. I now am virtually paperless and this hands down was the main reason for me deciding to switch from the old fax machine methods. There are many companies that offer free trials so it makes it easy for companies to decide if this is something that would work well for them.