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TurboTax Suspends State Tax E-Filing Amid Fraud Fears

TurboTax Suspends State Tax E-Filing Amid Fraud Fears
[Photo: Flickr user Chris Potter]

Just over a month into 2015, up to 18 states have already reported suspicious tax return filings and are blaming third-party tax filing software–and that means much of the blame belongs to TurboTax, which holds 60% of the tax software market, according to Forbes. TurboTax itself is trying to get ahead of potential fraud by halting tax e-filing for state returns across the country–but it might not be enough to stem the panic.

Minnesota has already banned TurboTax, stating that some state residents who have logged in to the service have found that a return for them has already been filed, which the state considers potentially fraudulent. Utah echoed this exact complaint–and TurboTax’s parent company, Intuit, might just have an answer as to why.

Intuit says it doesn’t believe its own data has been breached. Rather, they suspect that criminals are acquiring individuals’ information by shady means and filing their taxes elsewhere to collect the tax return. In other words, that scariest of digital specters: identity theft.

Intuit’s investigation is ongoing, but in the meantime, it’s suspending e-filing for all states. Intuit is still permitting TurboTax traditional filing (i.e., the “dead tree” method) as well as e-filing for federal returns, but those who have already filed state returns via TurboTax will have to sit in limbo until Intuit and these suspicious states work the situation out.

[via The Verge]

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