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Stock prices H&R block and Intuit dropped Tuesday after a report said Trump’s government efficiency team is considering creating a free tax-filing app.
Intuit, which makes TurboTax tax filing software, fell 5%, its worst day since Aug. 23, when the company’s stock price fell nearly 7%. H&R Block fell 8% and is having its worst day since 2020.
President-elect Donald Trump’s “Department of Government Efficiency” has made discussions “very preliminary” about creating a free tax filing app, The Washington Post reported. The so-called DOGE will not be an official government department, but an external advisory committee. It will be led and aimed by billionaire Elon Musk and former Republican presidential candidate Vivek Ramaswamy reduce government spending.
The DOGE tax filing app would be a competitor to 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 the simplification of the US tax code so that individuals, families and small businesses 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 “engaging with the new Administration and the Department of Government Efficiency on ideas related to strong and effective tax administration.”
It is unclear where a new DOGE tax application would bridge the gap with new policies already implemented by the Biden administration. Under the Biden administration, the IRS rolled out a Direct File pilot program in 12 states in March, allowing qualified taxpayers to file directly through a government portal. The IRS offers free filing services through the Free File program for taxpayers with adjusted gross income of $79,000 or less.
While both Intuit and H&R Block have free filing options, neither has time to offer these services transparently.
Federal Trade Commission in February filed an administrative complaint against H&R Block for misleadingly marketing free filing products and improperly deleting users’ ongoing tax data. Intuit, on the other hand, He agreed to pay $141 million in return, “millions of low-income Americans were supposed to go free for being tricked into paying tax services,” according to New York Attorney General Letitia James’ office.
