Intuit's Lobbying Ends Free IRS Tax Filing: Millions Pay More
The end of the free IRS tax filing program Direct File in the USA marks a significant shift in U.S. tax policy. Millions of Americans are now forced to rely on expensive tax software, with private companies like Intuit, maker of TurboTax, playing a pivotal role in its demise.
Intuit's influence on U.S. tax policy has been substantial, with the company investing tens of millions of dollars in lobbying efforts to limit or end free government-provided filing options. In the first quarter of 2025 alone, Intuit spent around $240,000 to sway tax policy decisions, successfully pushing for the shutdown of Direct File.
The company's lobbying efforts have included financial contributions to political decision-makers. In 2023, Intuit paid over $100 million in a class-action lawsuit for misleading customers into paying for services that should have been free. This is not the first time Intuit has faced criticism for its business practices. The company has a history of opposing government initiatives to simplify tax filing and manipulating search engines to make free offers less visible.
Critics, such as Senator Elizabeth Warren, have slammed Intuit's role in the process. They argue that the company's aggressive lobbying has made tax filing more difficult and expensive for citizens. The future of tax filing in the U.S. remains uncertain, with Intuit's influence on tax policy set to continue.
The shutdown of Direct File has left millions of Americans relying on expensive tax software. Intuit's significant lobbying efforts and financial influence have played a decisive role in this shift. As the U.S. looks towards the future of tax filing, the role of private companies like Intuit will continue to be a contentious issue.
