- US President-elect Donald Trump could be working on a free tax filing app
- The initiative is part of Elon Musk’s DOGE plans for streamlining
- Shares of Intuit and H&R Block fell after the news
Shares of tax software giants Intuit and H&R Block fell after reports claimed Donald Trump’s administration’s advisory team could explore developing a new, free tax filing app.
The WashingtonPost reported that Trump’s proposed Department of Government Efficiency (DOGE), an outside advisory body led by Elon Musk, could consider the app as part of plans to streamline government operations.
The two software companies, which currently dominate the tax preparation market, would face stiff competition if the U.S. government were to introduce a free alternative.
Trump and Musk are considering a free tax return app
While discussions surrounding the app appear to be in the early stages, the prospect has raised concerns among private tax preparation companies that profit from U.S. citizens filing their taxes.
The IRS currently offers free filing options to eligible taxpayers who earn less than $79,000. The agency also launched Direct File, a pilot program being tried in 12 states to give 18 million taxpayers free access to online tax filing services.
The DOGE-backed app would build on these existing efforts, which were spearheaded under the Biden-Harris administration. It is unclear whether the app will be available to all US taxpayers.
Intuit spokesperson Tania Mercado commented (via CNBC): “For decades, Intuit has publicly called for simplification of the U.S. tax code so that individuals, families and small businesses can better understand their finances.”
The Federal Trade Commission recently confirmed it would, among other things, take action against H&R Block for “deceptively marketing their products as ‘free’ when they were not free for many consumers.” The proposed settlement would require H&R Block to pay $7 million.