- US President-Elect Donald Trump could be working on a free tax filing app
- The initiative forms part of Elon Musk’s DOGE plans for streamlining
- Intuit and H&R Block shares fell following the news
Shares in tax software giants Intuit and H&R Block have fallen after reports claimed Donald Trump’s administration advisory team could be exploring creating a new, free tax-filing app.
The Washington Post reported that Trump’s proposed Department of Government Efficiency (DOGE), an external advisory body led by Elon Musk, could be considering the app as part of plans to streamline government operations.
The two software companies, which currently dominate the tax-filing market, would face major competition if the US government were to introduce a free alternative.
Trump and Musk considering free tax-filing app
While discussions surrounding the app appear to be in their early stages, the prospect has raised concerns among private tax-preparation firms which make a profit off US citizens filing their taxes.
The IRS currently offers free filing options to eligible taxpayers earning less than $79,000. The agency has also launched Direct File, a pilot program that it’s trialling across 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 have been driven under the Biden-Harris administration. It’s unclear whether the app would become available for all US taxpayers.
Intuit spokesperson Tania Mercado commented (via CNBC): “For decades, Intuit has publicly called for simplifying the U.S. tax code so individuals, families, and small businesses can better understand their finances.”
The Federal Trade Commission recently confirmed it would be taking action against H&R Block for “deceptively marketing their products as ‘free’ when they were not free for many consumers,” among other concerns. The proposed settlement would see H&R Block liable to paying out $7 million.