Fast company logo
|
advertisement

FAST GOVERNMENT

Intuit settlement: TurboTax may send you a check this month

TurboTax maker Intuit agreed to pay $141 million after it was accused of deceptive practices. Payments are expected to go out this month.

Intuit settlement: TurboTax may send you a check this month

[Photo: Andrew Harrer/Bloomberg via Getty Images]

BY Michael Grothaus2 minute read

When most people use Intuit-owned TurboTax, they hope to get a nice refund from the government. But millions of American TurboTax users may now be getting a payment directly from Intuit instead. That’s the result of a 2022 settlement between Intuit and all 50 states after the company was accused of misleading customers over its “free” tax software.

Here’s what you need to know:

  • What’s the backstory? Back in 2019, ProPublica launched an investigation into Intuit’s tactics of getting taxpayers who were eligible for free tax filing software to pay for using the company’s TurboTax offerings. Intuit had an agreement to participate in the IRS Free File Program, which lets taxpayers under a certain income threshold file for free. As part of its agreement with the government, Intuit would offer a free version of TurboTax to qualifying taxpayers, and the government, in turn, agreed to not make free tax filing software of its own, which would compete with Intuit’s business.
  • And Intuit broke that agreement? According to state officials, yes. The company engaged in what the New York State Attorney General’s office called “deceptive” practices. Those practices included blocking its IRS Free File software’s webpage from online search results and using similar names for its IRS Free File solution and another “freemium” TurboTax solution, which gets users to upgrade to paid packages. “TurboTax’s predatory and deceptive marketing cheated millions of low-income Americans who were trying to fulfill their legal duties to file their taxes,” New York Attorney General Letitia James said in a statement.
  • What were the terms of the settlement? Intuit agreed to suspend TurboTax’s “free, free, free” ad campaign and also pay out $141 million.
  • Who gets part of that $141 million? It is estimated 4.4 million Americans are eligible for a payout. How much a person gets depends on whether they used TurboTax’s Free Edition in certain tax years.
  • What years are covered? The agreement covers those who used TurboTax’s Free Edition for tax years 2016, 2017, and 2018 and were told they needed to pay even though they qualified for TurboTax’s IRS Free File offering.
  • How much will affected taxpayers get? A taxpayer will receive $30 for every year they are eligible. That means they could receive up to a maximum of $90.
  • What states are covered in this agreement? Taxpayers in all 50 states and the District of Columbia are covered by this agreement.
  • How will people get their compensation? The New York State Attorney General’s office says impacted individuals will receive notices and a check by mail automatically. Checks are expected to be delivered throughout the month of May. You can also visit the settlement website for more information.
advertisement

Recognize your company's culture of innovation by applying to this year's Best Workplaces for Innovators Awards before the final deadline, April 5.

CoDesign Newsletter logo
The latest innovations in design brought to you every weekday.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
Privacy Policy

ABOUT THE AUTHOR

Michael Grothaus is a novelist and author. He has written for Fast Company since 2013, where he's interviewed some of the tech industry’s most prominent leaders and writes about everything from Apple and artificial intelligence to the effects of technology on individuals and society. Michael’s current tech-focused areas of interest include AI, quantum computing, and the ways tech can improve the quality of life for the elderly and individuals with disabilities More


Explore Topics