Is it possible to send and receive faxes directly on the iPhone?
The goal is to try to avoid paying an additional 5 or 10 bux a month to use a 3rd party service. I'm hoping the functionality can be either bought through an app or configured.
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Looks like you're looking for the iFax app (Unfortunatlly I don't have a link here at work, but if you search for it in the store it should pop up), however I've got the next best thing!
Easy to use. Take a picture and send. http://www.boomfax.com
It is possible to send and receive faxes straight from your iPhone, Popfax- http://www.popfax.com has developed a fully featured mobile fax website, which turns mobile devices into miniature fax machines. It is easy, quick, and it works on the go.