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With more free tax filings than all other tax prep software companies combined, Intuit is the industry leader in free tax preparation.”Īn Intuit spokesperson declined to comment beyond the blog post.Ī series of articles by ProPublica have shown that, for many years, Intuit and other firms have steered taxpayers who were eligible for free online tax prep toward paid options. The statement added that “Intuit remains committed to free tax filing. “Yet the Free File program is designed to focus solely on tax preparation and e-filing with strict requirements for user experiences.” “Intuit’s goal is to democratize financial services that are usually only available to the wealthy by providing all Americans access to opportunities to improve their finances,” the company’s blog post said. The agreement with the IRS that governs the program comes with a series of restrictions - including some that bar advertising most paid products to Free File users - which were imposed to ensure the program is actually free. Intuit made its announcement in a blog post titled “Accelerating Technology Innovation to Better Help Consumers Solve Their Most Pressing Financial Problems.” The company said its decision to leave the program at the end of the tax season in October will allow it to “focus on further innovating” in ways it said are not permitted within the program. The Free File Alliance, the industry group that administers the program with the IRS, did not immediately respond to a question about the viability of the program after Intuit’s departure, but said, “We appreciate service in providing millions of free returns to American taxpayers.” The exit of Free File’s two largest participants - Intuit, and, last year, H&R Block - throws the future of the program into doubt.
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In exchange, the industry offered free versions of its software, including TurboTax, to most Americans.
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After lobbying by the companies, the IRS agreed not to develop its own filing portal. Such an option would have threatened the profits of the burgeoning tax prep software business. Bush administration proposed that the IRS create a free online filing option for taxpayers. The program was founded as a gambit by the tax prep industry, led by Intuit, after the George W. TurboTax maker Intuit, the largest company in the tax-preparation software industry, announced Thursday that it will leave the Free File program, the public-private partnership that offers free tax filing to millions of Americans but has been a magnet for controversy since its creation two decades ago.