Intuit gave away free filing to keep the IRS out of tax software.
In 2003 Intuit joined the Free File Alliance: the industry offered free filing, and the IRS agreed not to build its own software. Intuit has spent $53.8M on federal lobbying since 2004.
Transcript
In 2003, Intuit faced the one rival that could undo its business: the IRS itself.
Intuit could compete on product and let the IRS build its own tool. Or it could join the Free File Alliance: the industry offers something free, and the IRS agrees not to build its own software. Intuit joined.
Intuit's own 2019 filing said it plainly: the IRS has agreed it will not offer a duplicative or competing service.
Intuit has spent $53.8 million on federal lobbying since 2004, on many issues. In 2025, the IRS Direct File program was ended.
The free product was a toll that kept the only rival that mattered out of the market. Ask what your free tier protects, and what you would lose if the deal ended.
The records behind this video
Every figure in the video comes from this Decision Record, each with its sources.
Run this decision
The Ecosystem Lock-In Strategy Pack. “How hard can you press on lock-in you already have?” The framework, a model, a deck and the sourced cases, for running the same call on your own business. See the pack, $499 →
