IRS committee recommendation positive for Intuit, says Mizuho

Mizuho analyst Siti Panigrahi notes that the IRS’ Electronic Tax Administration Advisory Committee, or ETAAC, released its annual report to Congress today and advised Congress and the IRS to not develop a new direct eFile program. The firm views the ETAAC release as a positive for Intuit (INTU) since it provides some relief relating to “a longstanding bear thesis” around a federal direct free file option. The report encouraged the IRS to focus on “promoting the existing free options that already exist for taxpayers,” particularly given the “countless, more pressing priorities that should be funded and worked on before the IRS shifts any time or attention to Direct File,” noted the analyst, who has a Buy rating and $550 price target on Intuit shares. H&R Block (HRB) also provides consumers with tax preparation and filing services.