They're capitalizing on a generalized anti-government and anti-IRS sentiment. It's not difficult for them to convince representatives that the IRS would do it badly, and it should be left up to the free market.
They made, and basically broke, an agreement with the IRS. But it's really not easy for a government agency to say, "No, you broke the roles, so our agreement is void". It would basically take a lawsuit, which would be ugly, expensive, and time-consuming.
It's not so much a matter of simply "caving", as that Intuit has gotten itself entrenched and it's difficult to dig them out. In theory it's not impossible, but it would require a ton of work, time, and will. Such things are very hard to come by, especially when you're the IRS and everybody already is predisposed to hate you.
They made, and basically broke, an agreement with the IRS. But it's really not easy for a government agency to say, "No, you broke the roles, so our agreement is void". It would basically take a lawsuit, which would be ugly, expensive, and time-consuming.
It's not so much a matter of simply "caving", as that Intuit has gotten itself entrenched and it's difficult to dig them out. In theory it's not impossible, but it would require a ton of work, time, and will. Such things are very hard to come by, especially when you're the IRS and everybody already is predisposed to hate you.