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The stock price of H&R Block and intuition It fell after reports on Tuesday that the Trump administration’s Government Efficiency Team is considering developing a free tax filing app.
Intuit, the company behind tax filing software TurboTax, closed 5% lower, its worst day since Aug. 23, when its stock fell nearly 7%. Meanwhile, H&R Block fell 8%, its worst day since 2020.
President-elect Donald Trump’s Department of Government Efficiency has had “very preliminary” discussions about creating a free tax filing app. The Washington Post reported. The so-called DOGE will not be a formal government department but an external advisory board. It will be led by billionaire Elon Musk and former Republican presidential candidate Vivek Ramaswamy and aims to: reduce government spending.
The DOGE tax filing app will compete with both H&R Block and TurboTax.
Intuit spokeswoman Tania Mercado did not directly address the possibility of a government tax filing app, but told CNBC in a statement: “For decades, Intuit has publicly called for simplifying the U.S. tax code to help individuals, families, and small businesses file their taxes.”Now they can better understand their finances. ”
George Agurkis, H&R Block’s director of government relations, said in an email that the company looks forward to “working with the new administration and the Department of Government Efficiency on ideas for sound and efficient tax administration.” .
It’s unclear where the new DOGE tax app will bridge with new policies already in place by the Biden administration. Under the Biden administration, the IRS rolled out a pilot Direct File program in 12 states in March, allowing eligible taxpayers to file directly through the government portal. The IRS also offers free filing services through the Free File program to taxpayers with adjusted gross income of $79,000 or less.
Intuit and H&R Block both have free application options, but neither has a great track record when it comes to offering these services transparently.
In February, the Federal Trade Commission filed an administrative complaint against H&R Block, accusing it of deceptively marketing a free filing product and wrongfully deleting users’ ongoing tax data. On the other hand, intuition is agreed to pay $141 million New York Attorney General Letitia James’s office said the award was “for deceiving millions of low-income Americans into paying for tax services that were supposed to be free.”
clock: Spruce Point Shorts Intuit
