TurboTax users will get up to $85 in settlement over free filing deception
All 50 states and the District of Columbia. An investigation into Intuit’s practices determined the company used several deceptive and unfair practices, limiting tax filers’ participation in the IRS Free File Program. According to the Office of the Attorney General, the company used “confusingly similar names for both its IRS Free File product and its commercial “freemium” product.”
Intuit also used paid search advertisements to redirect consumers who were looking for the IRS Free File service to the TurboTax “freemium” product.“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 statement. “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.
WASHINGTON, DC – APRIL 17: Advocates gather in Washington, DC to call out tax prep companies like Intuit TurboTax and H&R Block for blocking simplified filing and to support Internal Revenue Service exploration of alternative free tax filing on April 17, 2023 in Washington, DC. Eligible TurboTax users include those who paid to file their federal tax returns in tax years 2016, 2017 and 2018, but were actually entitled to a free filing system through the IRS’ Free File program.
The total amount is based on the number of tax years each user filed. Most consumers, the New York AG said, are expected to get between $29 and $30. Those who filed using TurboTax for three consecutive years could get up to $85.
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