Just before Tax Day, the House passed a bill that experts say will prevent the IRS from building its own standalone free universal e-filing solution. The bill came after a spike in lobbying dollars from H&R Block and Intuit (maker of TurboTax).
After negative reporting on the event, captured by Truvalue Labs, the legislation was only passed after the removal of the controversial “Free File Alliance” element favored by tax preparers.
- Positive lobbying outcomes for companies may be unsustainable if they represent a temporary shoring up of support for an unsustainable business model
- Data captured by Truvalue demonstrates growing public awareness and a possible emerging material factor, as Regulatory Capture & Political Influence drives ~7% of HRB and INTU long-term Insight scores
- To date legislators have shown a willingness to eschew public e-filing options. That status quo baked into current valuations may rely on continued successful lobbying to prevent a free IRS e-filing platform
A 1-page sample from the brief is here:
1pg-RB_Intuit_HRBlock_4172019.pdf (230.9 KB)