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 Tuesday report saying the Trump transition team is considering creating a free tax-filing app.

Intuit, which makes the TurboTax tax-filing software, was down 5%, putting it on pace for its worst day since Aug. 23, when the company’s stock price fell nearly 7%. H&R Block was down 8% and on pace for 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. DOGE will be led by billionaire Elon Musk and former Republican presidential candidate Vivek Ramaswamy and aims to slash governmental spending.

A DOGE tax-filing app would represent a competitor for both H&R Block and TurboTax.

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. 

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.

Neither H&R Block nor Intuit responded to request for comment.

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