BLOCK(US:SQ) CNBC·2024-11-19 18:58Core Viewpoint - The stock prices of H&R Block and Intuit declined significantly following reports that the Trump transition team is considering the development of a free tax-filing app, which could pose a competitive threat to both companies [1][2][3]. Group 1: Stock Market Reaction - Intuit's stock fell by 5%, marking its worst performance since August 23, when it dropped nearly 7% [1]. - H&R Block's stock decreased by 8%, indicating it is on track for its worst day since 2020 [1]. Group 2: Government Initiative - The proposed tax-filing app would be part of President-elect Donald Trump's "Department of Government Efficiency," which aims to reduce government spending [2]. - The initiative is led by Elon Musk and Vivek Ramaswamy, highlighting its high-profile backing [2]. Group 3: Competitive Landscape - A new tax-filing app from DOGE would directly compete with existing services from H&R Block and TurboTax [3]. Group 4: Existing Government Programs - The Biden administration has already implemented a pilot Direct File program through the IRS, allowing qualified taxpayers to file directly via a government portal [4]. - The IRS also provides free filing services for taxpayers with an adjusted gross income of $79,000 or less [4]. Group 5: Transparency Issues - Both Intuit and H&R Block have faced criticism for their handling of free filing options, lacking transparency in offering these services [5]. - H&R Block was subject to a Federal Trade Commission complaint for misleading marketing of free filing products and mishandling users' tax data [6]. - Intuit agreed to pay $141 million in restitution for deceiving low-income Americans into paying for tax services that should have been free [6].