Intuit, H&R Block Stocks Plummet on Tax App Plans

Shares of tax preparation companies H&R Block and Intuit plummeted after reports emerged that President-elect Donald Trump's Department of Government Efficiency (DOGE), led by Elon Musk and Vivek Ramaswamy, is considering creating a free tax-filing mobile app. This potential government-backed app would directly compete with the existing services provided by these companies, causing H&R Block's shares to drop over 8% and Intuit's by more than 5%. The discussions are in the preliminary stages but have already sparked investor concern. This development follows the Biden administration's introduction of the IRS Direct File program, which allows eligible taxpayers to file taxes for free in certain states and aims to expand nationwide by 2025. Both companies have faced criticism for their misleading marketing of free filing options, with Intuit agreeing to pay restitution for deceptive practices.