The Trump administration is reportedly set to discontinue the IRS’ Direct File program, a free electronic tax filing system that was launched during President Joe Biden's term. This service offered taxpayers a convenient, quick, and cost-effective way to file returns directly with the IRS. Its elimination has been confirmed by sources familiar with the matter.
The decision comes amidst criticism from Republican lawmakers and commercial tax filing companies, who argue that the program unnecessarily duplicated existing free filing services that many find difficult to navigate. Companies like H&R Block (HRB, Financial) and Intuit (INTU), which provide paid tax preparation solutions, are publicly traded entities that could potentially see a positive impact from the termination of the government-run service.
H&R Block (HRB, Financial) and Intuit (INTU) stand to gain as users who relied on the IRS Direct File may turn to these companies for their tax filing needs, potentially increasing their customer base and revenue. The move may redirect taxpayers towards existing commercial tax preparation options, possibly strengthening these companies' market positions.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 3 analysts, the average target price for H&R Block Inc (HRB, Financial) is $62.33 with a high estimate of $70.00 and a low estimate of $49.00. The average target implies an downside of 2.36% from the current price of $63.84. More detailed estimate data can be found on the H&R Block Inc (HRB) Forecast page.
Based on the consensus recommendation from 4 brokerage firms, H&R Block Inc's (HRB, Financial) average brokerage recommendation is currently 2.3, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for H&R Block Inc (HRB, Financial) in one year is $56.00, suggesting a downside of 12.28% from the current price of $63.84. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the H&R Block Inc (HRB) Summary page.
