Your CNN account Log in to your CNN account The company responded in its statement that it’s “clear and fair with its customers, including with the nearly 100 million Americans who filed their taxes free of charge with our products over the last 8 years - more than all other tax prep software companies combined.” Today, every state in the nation is holding Intuit accountable for scamming millions of taxpayers, and we’re putting millions of dollars back into the pockets of impacted Americans.” “For years, Intuit misled the most vulnerable among us to make a profit. ![]() “Intuit cheated millions of low-income Americans out of free tax filing services they were entitled to,” James wrote in a press release. James said the tactic targeted low-income consumers in particular.įilers who used TurboTax’s Free Edition for tax years 2016 through 2018 will be mailed a check for approximately $30 for each year they were charged when they should have been able to use free services. ![]() James’ office said its investigation came after a 2019 ProPublica report accused the company of steering eligible clients away from federally supported tax filing products by making them difficult to find in web searches - instead directing them toward the paid version of the company’s filing services. (INTU) said that it “admitted no wrongdoing” as part of the agreement and it expects “minimal impact to its business” from the changes demanded in the future. The settlement, announced Wednesday by New York Attorney General Letitia James, said about 4.4 million customers were “unfairly charged.” Intuit must also suspend its “free, free, free” ad campaign because it falsely lured customers with the promise of free tax preparation services, the statement added. “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, the owner of tax filing software TurboTax, has agreed to pay $141 million in a settlement with all 50 states for allegedly steering millions of low-income Americans away from free tax-filing services. 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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