H&R Block shares fall as IRS considers offering free tax filing service

H&R Block (HRB) shares plummet while the  The Internal Revenue Service (IRS) is set to release a report this week about its plans to offer free online tax filing on its website.

The idea of ​​allowing taxpayers to electronically file directly with the agency at no cost was part of the $80 billion set aside for IRS upgrades in the Tax Act. reduction in inflation from last year. The agency noted that its current FreeFile tax filing program, which requires a third-party tax preparer, was used by only 3% of taxpayers last year. Additionally, he estimated that the average cost for Americans to file taxes in 2023 was $250.

After the report was published, the Biden administration will determine whether to move forward with the proposal.

Tax preparation firms oppose decision

H&R Block and TurboTax software provider Intuit (INTU) oppose this plan. “It would be a conflict of interest if the agency responsible for collecting, investigating and enforcing taxes was also a tax preparer,” the CEO of 39;Intuit, Sasan Goodarzi.

Shares of H&R Block are down almost 4%, while those of Intuit slip 1.5%. Shares of the former are down 14% year-to-date, while those of the latter are up 8% over the same period.


Source: investopedia.com

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