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Stock prices for H&R block and Intuit It dropped after a report on Tuesday said Trump's government efficiency team was considering creating a free tax-filing app.
Intuit, which makes tax-filing software TurboTax, closed down 5%, marking its worst day since Aug. 23 when the stock price fell nearly 7%. Meanwhile, H&R Block stock closed down 8% and had its worst day since 2020.
President-elect Donald Trump's Government Efficiency Administration has held “very preliminary” discussions about creating a free tax-filing app, The Washington Post reported. The so-called DOGE would not be an official government department but rather an external advisory committee. It will be led by billionaire Elon Musk and former Republican presidential candidate Vivek Ramaswamy and aims to reduce government spending.
DOGE's tax filing app will be a competitor to both H&R Block and TurboTax.
Intuit spokeswoman Tanya Mercado did not directly address the possibility of a government app for filing taxes, but she told CNBC in a statement: “For decades, Intuit has publicly called for simplifying the US tax code so that individuals, families, and small businesses can better understand their finances.” better.”
George Ajorkis, director of government relations at H&R Block, said in an email that the company looks forward to “engaging with the new administration and the Government Efficiency Department on their ideas for sound and efficient tax administration.”
It's unclear where the new DOGE tax implementation will fit into newer policies the Biden administration has already implemented. Under the Biden administration, the IRS in March launched a direct-file pilot program in 12 states, allowing eligible taxpayers to file directly through a state portal. The IRS also 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 stellar track records when it comes to offering these services transparently.
The Federal Trade Commission in February filed an administrative complaint against H&R Block for deceptively marketing free filing products and falsely deleting users' ongoing tax data. Meanwhile, Intuit agreed to pay $141 million in damages for “tricking millions of low-income Americans into paying for tax services that should have been free,” according to New York Attorney General Letitia James’ office.
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