The decline in H&R Block and Intuit stocks is attributed to the revelation of a potential free tax-filing app by the Trump transition team.

• After a report on Tuesday, the stock prices for H&R Block and Intuit decreased, as it was stated that the Trump transition team was considering developing a free tax-filing application.
• TurboTax, the software used for tax filing, experienced a 5% decline, matching its worst day since August 23. Meanwhile, H&R Block was down 8%, matching its worst day since 2020.
• An app for filing taxes with DOGE would pose competition to both H&R Block and TurboTax.

After a report on Tuesday, the stock prices for and declined, as it was stated that the Trump transition team was considering developing a free tax-filing app.

Intuit, the company behind TurboTax, experienced a 5% decline, matching its worst day since August 23, when its stock price dropped nearly 7%. Meanwhile, H&R Block was down 8%, heading towards its worst day since 2020.

The "Department of Government Efficiency," led by President-elect Donald Trump, has discussed creating a free tax-filing app, according to The Washington Post. DOGE, which will be led by billionaire Elon Musk and former Republican presidential candidate Vivek Ramaswamy, aims to reduce government spending.

An app for filing taxes with DOGE would pose competition to both H&R Block and TurboTax.

The Biden administration has already implemented policies that allow taxpayers to file directly through a government portal and offers free filing services for those with an adjusted gross income of $79,000 or less. It is unclear where a new DOGE tax app would fit into these existing policies.

Neither Intuit nor H&R Block have a reputation for transparently providing free filing services.

In February, the Federal Trade Commission accused H&R Block of deceiving customers with its free filing product marketing and deleting in-progress tax data. Meanwhile, Intuit agreed to pay $141 million in restitution for misleading low-income Americans into paying for tax services that should have been free, as stated by New York Attorney General Letitia James' office.

Neither H&R Block nor Intuit responded to request for comment.

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