Īs part of an agreement with the IRS Free File program, TurboTax allowed individuals making less than $39,000 a year to use a free version of TurboTax a 2019 ProPublica investigation revealed that TurboTax deliberately made this version hard to find, even through search engines, and that it deceptively steered individuals who search for the free version to TurboTax versions that cost money to use. Intuit is under investigation by multiple state attorneys general, as well as New York State Department of Financial Services. Intuit, the maker of TurboTax, has lobbied extensively against the Internal Revenue Service (IRS) creating its own online system of tax filing like those that exist in most other wealthy countries. The company has been subject of controversy over its political influence and deceptive business practices. Chipman of Chipsoft in 1984 and was sold to Intuit in 1993. TurboTax is a market leader in its product segment, competing with H&R Block Tax Software and TaxAct. TurboTax is a software package for preparation of American income tax returns, produced by Intuit. “Intuit is pleased to have reached a resolution with the state attorneys general that will ensure the company can return our focus to providing vital services to American taxpayers today and in the future,” Kerry McLean, Intuit’s executive vice president and general counsel, said at the time.īRAZIL - 1: In this photo illustration, a silhouetted woman holds a smartphone with the TurboTax logo displayed on the screen.Intuit Consumer Tax Group headquarters in San Diego (where TurboTax is developed) When contacted by The Associated Press on Friday, Inuit pointed to the company’s May 2022 statement following the settlement agreement. “The website lists Free, Free, Free and the customers are assuming their return will be free,” an internal company PowerPoint presentation said, per ProPublica. According to documents obtained by ProPublica, Intuit executives were aware of the impact of advertising free services that were actually not free for everyone. agreed to suspend TurboTax’s “free, free, free” ad campaign. Under the terms of last year’s settlement, Intuit Inc. READ MORE: Expecting a tax refund? Here’s why it could be smaller than last year “Today we are righting that wrong and putting money back into the pockets of hardworking taxpayers who should have never paid to file their taxes.”Īt the time of the May 2022 settlement, James said her investigation into Intuit was sparked by a 2019 ProPublica report that found the company was using deceptive tactics to steer low-income tax filers away from the free, federal services they qualified for - and toward its own commercial products instead. “TurboTax’s predatory and deceptive marketing cheated millions of low-income Americans who were trying to fulfill their legal duties to file their taxes,” James said in a Thursday statement. The amount paid to each eligible consumer ranges from $29 to $85 - depending on the number of tax years they qualify for. They will be notified by an email from Rust Consulting, the settlement fund administrator, and receive a check automatically.Ĭhecks will be mailed starting next week, and continue through the month of May. READ MORE: FTC sues Intuit to stop misleading ‘free’ TurboTax filing adsĪll 50 states and the District of Columbia signed the May 2022 settlement, which was led by James.Ĭonsumers eligible for restitution payments do not need to file a claim, the New York Attorney’s General Office said Thursday. Those impacted were low-income consumers eligible for free, federally-supported tax services - but paid TurboTax to file their federal returns across the 2016, 20 tax years due to “predatory and deceptive marketing,” New York Attorney General Letitia James said. was ordered to pay $141 million to some 4.4 million people across the country. In a settlement last year, TurboTax’s owner Intuit Inc. WASHINGTON (AP) - Millions of Americans who qualified for free tax services - but were instead deceived into paying TurboTax for their returns - will soon get settlement checks in the mail.
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