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Eventually, both Intuit and H&R Block, by far the largest providers, pulled out.
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The company stopped including code on its Free File website that made it harder to find the free version. After ProPublica reported that Intuit and others were intentionally making it harder for taxpayers to find the program online, there was renewed focus on Free File, including numerous investigations. Supposedly available to 70% of taxpayers, it only reached between 2% and 3% in recent years.
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The result was a program that relied on Intuit and other private software providers to provide the service instead.Īs we detailed in our story on Intuit’s 20-year campaign to prevent a government-provided tax filing service, the so-called Free File program was flawed from the start. Back then, soon after the White House floated “an easy, no-cost option for taxpayers to file their tax return online,” Intuit and its lobbyists fought back hard. The last time the federal government attempted to provide free tax filing was back in 2002, under the George W. “Reporting about industry scams certainly helped members see the importance of this issue and get this across the finish line.” “I’ve been working to allow taxpayers to file directly with the IRS for many years, and this is an important step toward achieving that goal,” Wyden said in a statement. The companies maintain they did nothing wrong. The reporting was also cited by Senate Finance Committee chair Ron Wyden, who was behind the new provision. Those articles led to investigations by federal agencies and states as well as a barrage of consumer legal actions. ProPublica has reported for years on how companies have sometimes even tricked customers into paying for services that they should have gotten for free. The industry has tried to block or subvert a government free tax filing system for decades.