Intuit is paying $141M for TurboTax settlement checks
Kimberly White
Intuit (NASDAQ:INTU), owner of TurboTax, will pay settlement charges of $141M for its TurboTax software that deceived low-income Americans, who had to pay for the service despite being eligible to file for free via the IRS Free File Program.
The company aggressively marketed another version, the TurboTax Free Edition, as âfree,â but it was only free for taxpayers with âsimpleâ returns. Other users had to upgrade to a paid version, however, these individuals may have been eligible for the IRS Free File Program.
State attorneys' general claim was that Intuit (INTU) violated the state consumer protection laws by engaging in deceptive and unfair marketing and advertising. New York Attorney General Letitia James said that Intuit (INTU) will make payments ranging from $29 to $85 to about 4.4M taxpayers who used TurboTaxâs Free Edition during tax years 2016 through 2018.
âIntuit is clear and fair with its customers, including with the nearly 100 million Americans who filed their taxes free of charge with our products over the last 8 years â more than all other tax prep software companies combined,â said Kerry McLean, Intuitâs executive VP and general counsel.
Intuit (INTU) expects to help more than 40M taxpayers prepare and file their tax returns for free over the next three years.