> "The solution probably entails making it illegal for them to upsell folks below the income bar, and require them to provide the free filing option based on the forms entered."
In the current environment where they appear to have enough political influence to block the IRS from allowing people to file their taxes online, it seems unlikely that any constraints will be imposed on their pursuit of profits.
Realistically, if they can be required to provide free filing to eligible people, a significant benefit to them over the IRS helping directly remains intact: Most people who file their taxes for free will use the same app once they're no longer eligible.
In the current environment where they appear to have enough political influence to block the IRS from allowing people to file their taxes online, it seems unlikely that any constraints will be imposed on their pursuit of profits.