Intuit, parent company of TurboTax, quits IRS free files program
Intuit, the parent company of TurboTax tax filing software, is quitting an IRS program that allows many Americans to file their taxes for free. The IRS is partnering with the Free File Alliance, a nonprofit coalition of tax software companies that provide free tax filing services for the Free File program. Intuit says in a blog post on its website that part of the reason it is leaving Free File – which is available to 2020 filers with adjusted gross income of $ 72,000 or less – is the “constraints” of the. program.
“The Free File program exceeding its founding goals of electronic filing and free tax preparation, and due to the limitations of the Free File program and conflicting demands from those outside the program, we are unable to pursue benefits that can help consumers make more money, save more and invest for the future, ”according to the blog.
Readers may recall that a series of reports from ProPublica found that Intuit and H&R Block misled tax filers into making them pay to file their taxes. Companies have blocked free versions of their software from showing up in search engine results, according to ProPublica, which makes them harder to find online. The IRS subsequently revamped the Free File program, removing a provision from the agreement that prohibited the agency from creating its own online filing system that would compete with software companies’ products.
Intuit’s blog post says the company will exit the Free File program at the end of tax season in October because it wants to “provide more financial benefits and enable Americans of all income levels to take control of their finances “.
Intuit closed the acquisition of credit rating monitoring firm Credit Karma for $ 7.1 billion in December 2020. The deal drew the attention of the Justice Department, which was concerned about possible issues. antitrust; Credit Karma started offering its own version of the free tax return in 2017.