What's Happening?
Tax management platform Instead is set to offer free tax preparation and filing services for various tax forms, including 1040, 1041, 1120, 1120-S, and 1065. CEO Andrew Argue announced that the service will roll out in phases, starting after the April 15, 2025 tax deadline. Initially, users will be able to file extended returns, with full service expected by the 2026 tax year. The initiative aims to make tax filing accessible and free, leveraging AI to reduce costs and improve efficiency. While basic filing will be free, advanced services and tax strategy offerings will remain paid.
Why It's Important?
Instead's decision to offer free tax filing services reflects broader shifts in the tax preparation industry, driven by technological advancements and AI integration. As automation reduces costs, traditional revenue models are challenged, prompting firms to explore new strategies. By providing free filing, Instead positions itself as a leader in adapting to these changes, potentially influencing industry standards. This move could democratize access to tax services, benefiting individuals and small businesses, while encouraging competitors to innovate and reevaluate their pricing structures.
