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The stock price is H&R Block and Intuit Shares fell on Tuesday after a report that the Trump administration’s efficiency team was considering creating a free tax filing app.
Shares of Intuit, which makes TurboTax tax preparation software, fell 5% on what would be its worst day since Aug. 23, when the company’s shares fell nearly 7%. H&R Block fell 8% and was on track for its worst day since 2020.
President-elect Donald Trump’s Department of Government Efficiency has held “highly preliminary” discussions about creating a free tax filing app. “Washington Post” report. The so-called DOGE will not be an official government department but an external advisory committee. The committee will be led by billionaire Elon Musk and former Republican presidential candidate Vivek Ramaswamy and will aim to cut government spending.
The DOGE tax filing app will be a competitor to H&R Block and TurboTax.
Intuit spokesperson Tania Mercado did not speak directly about the prospect 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 so that individuals, families and small businesses can better Understand their financial situation.
George Agurkis, H&R Block’s director of government relations, said in an email that the company looks forward to “engaging with the new administration and the Department of Government Effectiveness on ideas related to sound and efficient tax administration.”
It’s unclear where the new DOGE tax app will fit into the new policies already implemented by the Biden administration. Under the Biden administration, the Internal Revenue Service (IRS) launched a pilot direct filing program in 12 states in March, allowing eligible taxpayers to file directly through the government portal. The IRS also provides free filing services through its Free Filing Program to taxpayers with an adjusted gross income of $79,000 or less.
While both Intuit and H&R Block offer free filing options, neither has a great track record of delivering these services transparently.
Federal Trade Commission February An administrative complaint was filed against H&R Block, alleging that it deceptively marketed free filing products and mistakenly deleted users’ ongoing tax information. At the same time, intuition Agreed to pay $141 million “They defrauded millions of low-income Americans into paying for tax services that were supposed to be free,” the office of New York Attorney General Letitia James said.
watch: Spruce Point Shorts Intuit
