Taxpayers Who Paid for Turbotax Through ‘free’ Filing Ads Are Eligible for a $141 Million Settlement!
According to the settlement, the parent business of popular tax filing software TurboTax was wrongfully accused of charging low-income consumers for utilizing the free version of their software.
Attorney General Letitia James stated Wednesday that Intuit Inc., headquartered in Delaware, will pay reparation fees for allegedly “frauding millions of low-income Americans into paying for tax services that should have been provided free of charge.”
The money from the settlement will be distributed to millions of Intuit customers in the United States who, according to James, was “unfairly charged” during the company’s “free, free, free” advertising campaign.
A press statement from James stated that “Intuit defrauded millions of low-income Americans out of free tax filing services that they were entitled to.” “Years have passed during which Intuit has deceived the most vulnerable among us in order to make a profit.
The federal government is holding Intuit accountable for defrauding millions of taxpayers, and we’re putting millions of dollars back into the pockets of those who have been harmed by the company’s actions.”
This agreement should serve as a warning to organizations large and small that engaging in misleading marketing ploys is against the law, according to the attorney general. “New Yorkers can rely on my office to keep their wallets safe from white-collar criminals,” says the mayor.
People reached out to Intuit for comment, but the company said in a statement that it is “clear and fair with its customers, including the nearly 100 million Americans who have filed their taxes free of charge with our products over the last eight years — more than all other tax prep software companies combined.”
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Intuit stated that it “admitted no wrongdoing” as part of the settlement arrangement.
From 2016 to 2018, customers who utilized the TurboTax Free Edition received a check in the amount of about $30 for each year they were charged while eligible for free services.
A ProPublica story stated that Intuit was pushing low-income consumers away from free tax services and toward its commercial goods, prompting the Office of the Attorney General to launch an investigation into the firm.
Approximately $2.5 million of the $141 million settlement amount, according to James, will be utilized for administrative fund expenses.