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The stock price of H&R Block and intuition It fell after reports on Tuesday that the Trump transition team was considering developing a free tax filing app.
Intuit, the maker of TurboTax tax filing software, fell 5%, its worst pace since Aug. 23, when its stock fell nearly 7%. H&R Block fell 8%, its worst pace 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. DOGE 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 is a competitor to both H&R Block and TurboTax.
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.”
Neither H&R Block nor Intuit responded to requests for comment.
clock: Spruce Point Shorts Intuit
