Julia Chirkova
By Sam Burnett
The Kansas City Star
(TNS)
Henry and Richard Bloch stand as titans of philanthropy in Kansas City’s history, their names inextricably linked with generosity and civic engagement. Their substantial fortunes, amassed through the groundbreaking creation of the private tax preparation industry, have continued to benefit the community long after their passing through robust trusts and foundations. Yet, the very industry that fueled their immense wealth has drawn increasing scrutiny, particularly concerning its impact on the financial and temporal well-being of ordinary Americans and its alleged efforts to impede government initiatives aimed at simplifying the tax filing process.
The genesis of H&R Block, a company that became synonymous with tax preparation, can be traced back to 1955. This was the year the federal government ceased offering direct tax preparation services to the public. Seizing this void, the Bloch brothers established a business that would fundamentally alter how millions of Americans navigate their annual tax obligations. While H&R Block has undeniably become a corporate success story, its prosperity has been built, as the original article posits, "on the backs of ordinary Americans." The costs associated with private tax preparation services, in essence, function as an additional tax. This financial burden is compounded by the significant expenditure of time and the often considerable frustration that accompanies the complex process of filing taxes.
This dynamic has not gone unnoticed by critics and policymakers. H&R Block, alongside other major players in the private tax preparation sector such as Jackson Hewitt, Intuit (maker of TurboTax), and Liberty Tax Service, has been accused of leveraging its considerable corporate influence to actively resist measures that would streamline the tax filing process for the average citizen. These companies, it is argued, have a vested interest in maintaining the complexity of the tax system, as it perpetuates the need for their services.
A pivotal development in this ongoing debate was the Internal Revenue Service’s (IRS) pilot program, "Direct File," launched in 2024. This initiative aimed to provide taxpayers with a free, user-friendly, interview-style system to file their returns directly with the federal government. The program’s expansion in 2025 to 25 states represented a significant step towards allowing millions more Americans to bypass private tax preparation companies. The potential implications were substantial, not only in terms of cost savings for individuals but also in enabling them to claim billions of dollars in tax credits they might otherwise have missed due to the complexity of the existing system or the cost of professional assistance.
However, the future of Direct File has been cast into doubt. Late last year, the Trump administration made the abrupt decision to cancel the program. While the precise motivations behind this decision remain, as the original piece suggests, "opaque," the timing and the potential beneficiaries of such a move have fueled considerable speculation. Critics and advocates for free tax filing services have raised concerns about the influence of the private tax preparation industry on this governmental decision.
The Influence of Lobbying on Tax Policy
The financial investment by H&R Block and its competitors in lobbying efforts to oppose Direct File and similar initiatives is a significant factor in this discussion. Reports indicate that these companies have collectively spent tens of millions of dollars to advocate for their interests in Washington D.C. Their lobbying strategy often centers on arguments that a free, government-provided filing system is redundant, potentially inefficient, and would concentrate too much power within the IRS. They contend that their private services offer superior value and expertise, and that government intervention in this space is unwarranted.
The argument of redundancy, however, is challenged by the success and user satisfaction reported by Direct File. The program, by replicating and often improving upon the functionality offered by private companies, provided a tangible benefit: it was free. For many Americans, this meant saving hundreds of dollars annually, a sum that can be particularly impactful for lower and middle-income households. Furthermore, the overwhelming majority of Direct File users reported high satisfaction rates, rating the system as "excellent" or "above average." This user feedback suggests that the IRS’s offering was not only functional but also met and exceeded the expectations of those who utilized it.
The Bloch Legacy: Philanthropy Versus Industry Practices
It is crucial to acknowledge the significant philanthropic contributions of Henry and Richard Bloch. Their commitment to Kansas City has been profound, and the impact of their charitable endeavors is undeniable. Their personal integrity and dedication to their community are not in question. The wealth generated by H&R Block has demonstrably improved the lives of many through the various foundations and trusts they established. However, this philanthropic success stands in contrast to the broader implications of the industry they helped to pioneer.
The core issue at hand is whether a system that requires individuals to pay for a service that a government agency can provide for free is equitable or efficient. The very existence of the private tax preparation industry, while a legitimate business enterprise, creates a financial barrier for millions of Americans. This barrier can lead to the underreporting of income, the failure to claim eligible tax credits, and an overall increase in the tax burden for those least able to afford it.
The Case for a Simplified Tax System
The potential for a more streamlined tax system, where the government takes a more active role in calculating tax liabilities, is a concept that has been explored globally. Many developed nations have implemented systems where taxpayers receive a pre-calculated tax bill from their government, often based on information already held by tax authorities. This approach significantly reduces the reliance on third-party preparers and simplifies the process for the vast majority of citizens.
Implementing such a system in the United States would undoubtedly be a monumental political undertaking, given the entrenched interests of the tax preparation industry and the complexities of the existing tax code. However, the administrative feasibility of such a system is arguably less challenging than the political hurdles.
Moving Forward: The Importance of Direct File
In the interim, the author argues, the reinstatement and expansion of the Direct File program represents a critical step towards alleviating the financial and temporal burdens placed on American taxpayers. The argument is straightforward: Americans already face a substantial financial obligation through taxes. They should not be compelled to incur additional costs to private companies simply to understand and fulfill their legal tax obligations. The success of the pilot program demonstrated a clear demand and a viable alternative to the current system. The ongoing debate surrounding its future highlights the tension between private enterprise and public service, and the critical need to ensure that the tax system serves the interests of all Americans, not just a select few.
The continued opposition to government-provided free filing services by major tax preparation companies raises questions about their commitment to the financial well-being of the average taxpayer. While their right to lobby is protected, the ethical implications of actively working to preserve a system that many find costly and burdensome warrant continued public discourse and scrutiny. The legacy of the Bloch brothers, while celebrated for its generosity, now intersects with a complex industry whose practices continue to shape the financial lives of millions. The question remains: will the future of tax preparation prioritize simplification and accessibility for all, or will it remain a lucrative, albeit burdensome, endeavor for private companies?
About the Author:
Sam Burnett is a Kansas City, MO-based attorney.
Photo credit: Raysonho @ Open Grid Scheduler/Scalable Grid Engine/Wikimedia Commons
©2026 The Kansas City Star. Visit kansascity.com. Distributed by Tribune Content Agency LLC.
