![]() 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,” said Attorney General James. New York will receive more than $5.4 million for more than 176,000 New Yorkers who were tricked into paying to file their federal tax return. All 50 states and the District of Columbia have signed onto the agreement. In addition, Intuit must suspend TurboTax’s “free, free, free” ad campaign that lured customers with promises of free tax preparation services, only to deceive them into paying. As a result of Attorney General James’ agreement, Intuit will pay $141 million in restitution to millions of consumers across the nation who were unfairly charged. (Intuit), for deceiving millions of low-income Americans into paying for tax services that should have been free. NEW YORK – New York Attorney General Letitia James today announced a record multistate agreement with the owner of TurboTax, Intuit Inc. New York Will Receive Over $5.4 Million for More Than 176,000 New Yorkers Moreover, TurboTax’s website included a “products and pricing” page that stated it would “recommend the right tax solution.” However, the page never displayed or recommended the IRS Free File program, even when consumers were ineligible for the “freemium” product.AG James Leads All 50 States in Agreement with TurboTax Owner Intuit forĭeceiving Low-Income Americans into Paying for Free Tax Services Intuit also purposefully blocked its IRS Free File landing page from search engine results during the 2019 tax filing season, effectively preventing eligible taxpayers from filing their taxes for free through Intuit. Intuit bid on paid search advertisements to direct consumers who were looking for the IRS Free File product to the TurboTax “freemium” product instead. The company used confusingly similar names for both its IRS Free File product and its commercial “freemium” product. The states’ investigation found that Intuit engaged in several deceptive and unfair trade practices that limited consumers’ participation in the IRS Free File Program. For more information about who is covered by the settlement, and information about the settlement fund, please visit States opened an investigation into Intuit following reports that the company was using deceptive digital tactics to steer low-income consumers toward its commercial products and away from federally-supported free tax services. Most consumers are expected to receive between $29 and $30. The amount each consumer receives will be based on the number of tax years for which they qualify for a payment. Checks are expected to be mailed out starting the week of May 8, 2023. These consumers will receive a check in the mail automatically without having to file a claim. Consumers who are eligible for a payment will be notified by email by the settlement fund administrator, Rust Consulting. “I am pleased that consumers will start to receive checks under the settlement, which holds Intuit accountable for intentionally deceiving taxpayers simply to increase sales of their products.”Įligible consumers include those who paid to file their federal tax returns through TurboTax for tax years 2016, 20 but were eligible to file for free through the IRS Free File Program. “Intuit deceived customers into paying for their products while attempting to diminish free tax services available through the federal government,” Raoul said. Eligible consumers will be contacted by email, and checks will be mailed throughout the month of May. Under the bipartisan settlement announced in May 2022, Intuit will pay $141 million as restitution to millions of Americans, including more than $4.38 million to more than 143,000 affected Illinoisans. More than 143,000 Illinois Consumers to Receive Settlement ChecksĬhicago – Attorney General Kwame Raoul today announced Illinois consumers deceived into paying for tax services that were available for free will soon begin receiving settlement checks from a nationwide multistate settlement with TurboTax owner Intuit Inc.
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