The Tax Man Getting Fatter? (INTU, HRB)

According to the proposed 2012 budget put forth by President Obama, the IRS would be getting an additional 5,000 employees, mostly to seek people who try to cheat on their taxes. This would be an increase of 9.4% over the agency's current headcount. The funding for 2012 would be $13.3 billion for the agency, a rise of $1.1 billion from 2010. $460 million of the $1.1 billion would go to support the agency's tax-enforcement programs. According to the budget proposal, an increase in headcount of the IRS would be more than covered, as the additional employees would be able to recoup $1.3 billion in additional revenue. Companies like Intuit INTU, H&R Block HRB and Jackson Hewitt JTX are companies that could potentially see a boost from an increase in the headcount at the IRS. Intuit makes the do-it-yourself tax software named Turbo Tax. H&R Block and Jackson Hewitt cater to lower income tax filers, especially those seeking refund anticipation loans.