TurboTax and H&R Block Saw Free Tax Filing as a Threat

Despite signing a deal with the IRS that pledged they would help tens of millions of Americans file taxes for free, tax software giants Intuit, the maker of TurboTax, and H&R Block instead deliberately hid the free option and actively steered customers into paid products, according to an internal document and five current and former employees of the companies. Intuit’s spokesman said the company “created and paid for 17 marketing initiatives … to raise awareness and educate taxpayers about the IRS Free File program.” On LinkedIn, Heather Samarin, who was a TurboTax vice president of product management a decade ago, said that she had been “charged with addressing the threat posed by IRS free efile program” and had “revamped TurboTax marketing strategy for low-end tax filers,” driving a “100% increase in revenues.”

Source: www.propublica.org