H&R Block, Intuit stocks fall on news of a potential free tax-filing app by Trump transition team
- The stock prices for H&R Block and Intuit fell after a report said Trump's government efficiency team is considering creating a free tax-filing app.
- Intuit, which makes the TurboTax tax-filing software, closed down 5%, while H&R Block closed down 8%.
- A tax-filing app created by Trump's planned "Department of Government Efficiency," headed by Elon Musk and Vivek Ramaswamy, would be a competitor to both H&R Block and TurboTax.
The stock prices for H&R Block and Intuit fell after a report Tuesday said Trump's government efficiency team is considering creating a free tax-filing app.
Intuit, which makes the TurboTax tax-filing software, closed down 5%, marking its worst day since Aug. 23 when the stock price fell nearly 7%. H&R Block, meanwhile, closed down 8% and had its worst day since 2020.
President-elect Donald Trump's "Department of Government Efficiency" has held "highly preliminary" discussions about creating the free tax-filing app, The Washington Post reported. The so-called DOGE will not be an official government department but an outside advisory commission. It will be led by billionaire Elon Musk and former Republican presidential candidate Vivek Ramaswamy and aims to slash government spending.
A DOGE tax-filing app would be a competitor of both H&R Block and TurboTax.
Intuit spokeswoman Tania Mercado didn't directly address the prospect of a government tax-filing app, but told CNBC in a statement that, "For decades, Intuit has publicly called for simplifying the U.S. tax code so 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 their ideas related to sound and efficient tax administration."
Money Report
It's unclear where a new DOGE tax app would bridge with newer policies the Biden administration already implemented. Under the Biden administration, the IRS in March rolled out a pilot Direct File program in 12 states, allowing qualified taxpayers to file directly through a government portal. The IRS also offers free filing services through its Free File program for taxpayers who make an adjusted gross income of $79,000 or less.
While both Intuit and H&R Block have free filing options, neither have had stellar records when it comes to transparently offering those services.
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The Federal Trade Commission in February filed an administrative complaint against H&R Block for deceptively marketing free filing products and wrongfully deleting users' in-progress tax data. Intuit, meanwhile, agreed to pay $141 million in restitution "for deceiving millions of low-income Americans into paying for tax services that should have been free," according to the office of New York Attorney General Letitia James.
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