Intuit, owner of the popular tax-filing software TurboTax, has agreed to pay a $141 million settlement after authorities alleged it deceived millions of low-income Americans …
Intuit, owner of the popular tax-filing software TurboTax, has agreed to pay a $141 million settlement after authorities alleged it deceived millions of low-income Americans into paying for tax-return services that should have been free. Intuit will provide restitution to nearly 4.4 million consumers who used TurboTax’s Free Edition between tax years 2016 and 2018, according to a multistate agreement brokered by New York Attorney General Letitia James. These consumers were told they had to pay to file, even though they qualified for the IRS Free File program, a partnership between the agency and major tax prep software companies. Through the program, individuals earning less than $34,000 can file their taxes free of charge. In return, the IRS has agreed not to develop its own online tax return program. Read more: TurboTax Accused of Scamming ‘Billions’ From Taxpayers: What to Know Intuit withdrew from the Free File program in July 2021 to launch its own product, TurboTax Free Edition, which it said was free for customers with “simple tax returns” that used IRS Form 1040.
