A record multi-state agreement, led by New York Attorney General Leticia James, was reached with tax software company Intuit, which makes TurboTax.
Under the terms of an agreement reached by Attorney General James with officials from all 50 U.S. states and Washington, Intuit has agreed to pay $ 141 million to millions of low-income taxpayers who believe the company’s TurboTax “Free Edition” is actually free.
Taxpayers who were tricked into paying for the free edition of TurboTax between 2016 and 2018 will receive $ 30 for each year they use the software. Fortunately, the affected customers do not have to take any action and they will be automatically notified and receive checks from the company by mail
IN press releaseAttorney General James provided further information on the matter and explained how the agreement would inform companies about fraudulent marketing, saying:
“Intuit has defrauded millions of low-income Americans of the free tax filing services to which they are entitled. For years, Intuit has misled the most vulnerable among us to make a profit. Today, every state in the nation holds Intuit responsible for defrauding millions of taxpayers, and we are putting millions of dollars back into the pockets of affected Americans. This agreement should serve as a reminder to companies large and small that engaging in these fraudulent marketing gimmicks is illegal. New Yorkers can count on my office to protect their wallets from white-collar fraudsters. “
According to On the edgein fact, there are two versions of Intuit’s TurboTax software with the word “free” in its name: TurboTax Free Edition and TurboTax Free File.
Despite the fact that the company offers the free edition of its tax software on the market as completely free, nearly 4.4 million taxpayers actually owe money to the company after using it.
Instead of TurboTax Free Edition, these taxpayers actually had to use the TurboTax Free File, which until recently was part of the IRS’s Free File program, which saw the U.S. government work with tax companies to provide American citizens with a free way to file their taxes. However, Intuit dropped out of the IRS’s 2021 free files program because the program’s limitations kept it from innovating.
In addition to broadcasting $ 141 million, Intuit said it would stop misrepresenting its online tax preparation products, improve the disclosures found in its ads and marketing materials for its free products, and make it clearer in its software whether consumers are eligible for free filing and make sure customers don’t have to start over if they switch from a paid tax product to a free one.
Through On the edge