TurboTax Free Intuit owns a low-income New York AG suit

Hand holding a box containing TurboTax Deluxe software.

This year, some people will get what I think you can call a ‘Bonus Tax Refund From Intuit, the company that operates TurboTax.

This is becauseAfter years of misleading consumers via Deceptive advertising tacticsAnd search engine manipulationAnd Built-in hidden graphics Intuit’s TurboTax files software, the company has to pay out $141 million thanks to a lawsuit led by New York attorney general, Letitia James. The money will be distributed to the 4.4 million customers who came to TurboTax between 2016 and 2018, and were wrongly charged for services advertised as “free.” If you’re among those included in the lawsuit, you’ll automatically receive a check for about $30 for each of the covered years you spent for the paid TurboTax version.

Intuit has tricked millions of low-income Americans out of the free tax filing services to which they are entitled. AG James said in Wednesday statement.

All 50 states and Washington, D.C. have also signed the lawsuit it inspired Fantastic series From ProPublica reports, according to James’ statement. “Today, every state in the country holds Intuit responsible for deceiving millions of taxpayers, and we are putting millions of dollars back into the pockets of affected Americans,” AG said.

Texans make up the bulk of the people compensated through the settlement, with more than 10% of eligible consumers (or nearly half a million people) in the state, according to Appendix C of lawsuit agreement.

For years, TurboTax ran two file services, one in partnership with the IRS Free File program that was actually free to some low-income people and members of the military, and another called “TurboTax Free Edition,” which aggressively directed users to paid versions of the program and remained free only for those They have “simple returns”.

This “free” version was advertised heavily via paid Google add-ons, while the truly free version was advertised deliberately hidden from the search results. in 2020 Tell IRS TurboTax and its fintech peers that they need to stop blocking certified free file programs, and start being transparent about how users access them. Then, in July 2021, Intuit left the IRS Free File partnership “to focus on further innovation in ways not permitted under current Free File Guidelines,” according to Declaration by the company.

at New company statement Regarding millions of dollars Settling, Intuit stuck to its claim that it had done nothing wrong, and said it would not be harmed by the mandatory damages. As part of the agreement, Intuit admitted no wrongdoing, agreed to pay $141 million to put the matter behind it, and made certain commitments in connection with its advertising practices. Intuit already adheres to most of these advertising practices and expects little impact on its business from implementing the remaining changes going forward,” the company wrote. As a bonus: The statement also includes a quote from Intuit Vice President Keri MacLean describing the lawsuit as “completely unnecessary.”

The federal government does not offer its own free tax filing program due to the fact that she is 20 years old anti-competition agreement With tax filing companies, but all of this shows that taxpayers are likely to be better off. Although now, we Still stuck on the move The good old deception network.

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By Elvira Soto

"Hardcore troublemaker. Internet advocate. Creator. Subtly charming entrepreneur. Alcohol fanatic."

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