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Intuit, the company behind the popular tax filing software TurboTax, announced that it will no longer participate in the IRS Free File Program, which helps millions of Americans file tax returns at no cost.
“The Free Files program has exceeded its founding goals of e-File and Free Tax Preparation, and due to the limitations of the Free Files program and the conflicting demands of those outside the program, we wish to continue in the program and distribute it to all.” about the benefits that can help consumers make more money, save more and invest for the future,” the company wrote in a blog post on 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 an adjusted gross income of less than $72,000 are eligible to use the program to file federal taxes at no cost. Intuit has been a part of this program for almost 20 years.
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Part of Intuit’s reasoning for leaving the program is its success.
“Today, more than 90% of all taxpayers e-file their taxes and free tax preparation is currently available to 100% of American taxpayers through a combination of commercial, philanthropic and IRS-sponsored methods,” the company said. Wrote. “We are proud that Intuit’s participation in the Free File Program has helped the organization increase electronic filing by up to 80% and provide free tax preparation to 70% of filers.”
Last tax season, Intuit did 17 million free tax filings, including about 3 million through the IRS Free File, according to the company. For the past eight years, of the nearly 100 million free filings made through the company, about 90% have been out of FreeFile, it said.
Intuit said not working with the IRS program would mean fewer hurdles ahead.
The company wrote, “This decision encourages us to focus on further innovation in ways that are not acceptable under the current Free File Guidelines and protect the full financial health of all Americans in tax preparation and beyond through all of our products and services.” Will allow you to serve better.” in your blog post.
To be sure, Americans who still need to file a 2020 tax return and are eligible for the IRS Free File Program can continue to choose Intuit’s software through October, when tax season ends. goes. The company will not offer services with Free File next year.
The IRS did not respond to CNBC’s request for comment.