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Intuit, the company behind the popular TurboTax tax filing software, has announced that it will no longer participate in the IRS Free File program, which helps millions of Americans file tax returns free of charge.
“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 continue the program and provide all of the benefits that can help consumers earn more money, save more and invest for the future, ”the company wrote in a blog post Thursday.
Intuit did not immediately respond to a request for further comment.
The IRS Free File program is a public-private partnership between the agency and the Free File Alliance, a group of tax preparation companies with online software such as TurboTax, TaxAct, FreeTaxUSA and more. Americans with adjusted gross income less than $ 72,000 can use the program to file their federal taxes at no cost. Intuit has been part of the program for almost 20 years.
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Part of Intuit’s reasoning for leaving the program is its success.
“Today, over 90% of all taxpayers file their returns electronically, and free tax preparation is currently available to 100% of US taxpayers through a combination of business, philanthropic, and IRS-funded methods,” wrote the company. “We are proud that Intuit’s participation in the Free File program has helped the organization move beyond its charter of increasing electronic filing to 80% and making free tax preparation accessible to 70% of filers.
In the last tax season, Intuit delivered 17 million free tax returns, of which about 3 million were through IRS Free File, according to the company. In the past eight years, nearly 90% of the roughly 100 million free deposits made through the company have been made outside of Free File, he said.
Not working with the IRS program will mean less strain in the future, Intuit said.
“This move will allow us to focus on innovation in a way not permitted by current free file guidelines and to better serve the full financial health of all Americans across all of our products and services, in tax preparation. income and beyond, ”the company wrote. in his blog post.
Certainly, Americans who have yet to file 2020 income tax returns and are eligible for the IRS Free File program can continue to select Intuit’s software until October, when tax season ends. The company will not be offering services with Free File next year.
The IRS did not respond to CNBC’s request for comment.
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