Tax Credits To Intuit Better Spent To Fund a Free Alternative To TurboTax, Lawmakers Say

Intuit is being questioned by US lawmakers who say federal tax credits the company received could have been better spent to build a free government alternative to Intuit's popular online tax preparation software, TurboTax. From a report: 'For years, Intuit's corporate lobbyists have argued that the federal government should not set up a program for Americans to file their taxes online and for free because it would be too costly for taxpayers,' the lawmakers, including Senators Elizabeth Warren and Bernie Sanders, wrote in a letter to the company. 'Your company's disclosure reveals that Intuit's research tax break from 2022 alone could have been enough to fund a year of a free e-File program for millions of Americans.'

The lawmakers asked Intuit to provide details on its research expenses dating to 2018. Warren, a Massachusetts Democrat, and Sanders, an Independent from Vermont, were joined on the letter by Senator Richard Blumenthal, a Connecticut Democrat, and Representative Katie Porter, a Democrat from California. The Internal Revenue Service, in a report to Congress last year, estimated it would cost $64 million to $249 million annually for the agency to run a free-filing program. In the fiscal year ending in July 2023, Mountain View, California-based Intuit received $106 million in federal research and experimentation credits, which amounted to about 4% of its total R&D expenses, according to a regulatory filing.

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