Saturday, July 17, 2021

Intuit will withdraw from IRS Free File program

Intuit, maker of TurboTax, will cease participating in the IRS Free File program (CNBC article). People will still be able to file free using TurboTax, since there is a free version of TurboTax outside the IRS's Free File program. CNBC says, "In the last tax season, Intuit delivered 17 million free tax filings, including roughly 3 million through IRS Free File, according to the company." So 14 million returns, about 82% of the 17 million, were filed using TurboTax's free version outside the IRS's Free File program anyway. The 82% is instead 90% for the latest eight tax seasons. 

Neither the CNBC article nor Intuit's blog mention ProPublica's smear campaign conducted between about April 2019 and February 2020. Regardless, I bet the smearing had something to do with Intuit's decision. I wrote several blog posts about the smearing. At least it gave Intuit a lot of bad publicity and spurred a government investigation (link).

The Intuit blog mentions the limitations and restraints of the IRS Free File program, but does not say what they are. Most or all of these limitations and restraints are ones imposed by the IRS. Very likely one is the IRS's no advertising mandate. Another likely one is the "dead-end street" problem within the IRS Free File program. A user can start using one of the free software offerings and later find out he or she does not qualify due to some obscure criteria. In other words, the software leads the user to a "dead-end street,"  and the user has wasted a lot of time. 

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