May 5, 2022
The tax-filing software TurboTax is about to pay back its customers $141 million in settlement, CNN Business reports. This is due to the accusations made against the company, which state that TurboTax unfairly steered its customers away from using free tax-filing alternatives.
Although Intuit, the owner of TurboTax, agreed to pay the settlement within all 50 states, it gave a statement that said that the company doesn’t admit to doing anything wrong. The company claims that it had been fair and clear with around 100 million American customers that have been using its services for the last 8 years.
Letitia James, New York Attorney General, stated that the investigation against TurboTax began in 2019. Its aim was to prove that the company was steering eligible clients away from federally supported tax-filing products. James states that this investigation discovered that Intuit took advantage of around 4.4 million low-income Americans that didn’t know how to do their taxes, by directing them towards the paid version of TurboTax’s filing services.
The $141 million-worth settlement will be used to pay around $30 per tax year to every customer that used a paid TurboTax service for the tax years 2016 through 2018 when they were eligible to get a free tax consultation. The statement further adds that Intuit will be required to cease its “free, free, free” advertising campaign since it misled consumers with the promise of free tax preparation services.