TurboTax set to pay out $141 million settlement to defrauded tax filers

[jgo]

Source: UPI

Millions of TurboTax users nationwide will soon get a small share of a $141 million settlement announced a year ago in New York as restitution for deceptive practices by the company's owner Intuit.

More than 4 million consumers in all 50 states and the District of Columbia are eligible to receive a portion of the May 2022 settlement that was intended to punish the tax preparation giant for snookering millions of low-income filers into paying for what should have been free tax services.

Intuit was not compelled to admit any wrongdoing as part of the settlement.

Some affected customers will be eligible to pocket as much as $85 in compensation, but most filers will only receive about $30.


Read more: https://www.upi.com/Top_News/US/2023/05/05/intuit-turbotax-settlement/3991683289802/

[rickford66]

1. The free filing is never free.

[Alexander Of Assyria]

5. Massive corporate fraud...and who is going to jail?...will happen again and again...no deterrence.

As planned.

[Kaleva]

11. It's been free for me for several years

They do try to upsell but I don't need that so I decline

[NullTuples]

2. Intuit was not compelled to admit any wrongdoing - thus it's just a cost of doing business

We pay taxes in part so the government can protect us from dishonest business practices. This would work better if companies actually had some disincentive to continue being dishonest.

Turbo Tax's revenue last year was 12.7 billion USD. This $141 million was already written down as an expense last year. That's all it is, an expense of doing business that they can then use to boost their posted profits & return on investment. They've already moved on.
https://investors.intuit.com/news/news-details/2022/Intuit-Reports-Strong-Full-Year-Results-and-Sets-Fiscal-2023-Guidance/default.aspx

[OMGWTF]

3. BFD. Until these criminals start going to prison the fleecing and floggings will continue.

[Midnight Writer]

8. Exactly.

[Submariner]

4. Intuit is crooked

Back in the early '90s, INTUIT would not process my mailed (USPS) Master Card payment due before, or on, the bill due date.

So in 4 out of 5 months, they would tag on a $25 late fee on the bill, and whatever the finance charges would be for that month, for making a "late" payment. Internet banking ended that kind of 'delay the mail' fraud, but we see they defraud with other products too.

Each month had to call and argue to get the false charges reversed. Dropped the card and learned to stay away from INTUIT.

[Alexander Of Assyria]

6. In to your...wallet and nothing else matters.

[Freddie]

7. After I finish federal tax, it tries to trick me into filing PA tax

For a fee, of course, when you can file PA tax on the state site for free.

[Kaleva]

12. Weird. TurboTax MI state tax preparation is free for those who qualify

[Bengus81]

16. They do it for free and then charge for actually filing--which is just efiling

Then run the ads that it's free,freee,freeeeee.

[Kaleva]

18. I've never been charged for them to file

For either the federal or state

[twodogsbarking]

9. A few years back Turdotax was refunding $25. They need my SS# to

verify it was me. I never gave them my SS #. They mined it from the tax return.
I complained but they gave a lame excuse. Couldn't get the $25. Fuck them.

[RobinA]

10. I'm Glad

this issue got some attention. I use a different online tax preparation software that is equally scammy. They try every trick in the book to get more money out of you, including telling you you need a more expensive version about half way through even a fairly simple filing. Extra $30 dollars if you have mutual funds. Then they pull the state filing gambit at the end. I've figured out how to get through with a minimum of add-ons, but it is extra work to file state tax elsewhere. I don't understand why you can't file directly with the IRS for free. If you do it manually there's no charge. By the same logic that you have to pay some third party to online file, shouldn't the IRS charge for the hard copy forms?

[Johnny2X2X]

13. When you are poor, everything is a scam

And I can tell you this, Turbo Tax was misleading, they tricked people into all kinds of purchases. But so are those H&R Block type places that do your taxes and give you money within 24 hours less the $200 fee.

There are many ways to file your taxes that will all be accepted and are legal. Poor people don't have access to accountants who can get them more money. They hink Turbotax and H&R Block are getting them every possible deduction and break, but they aren't, you're not getting what you pay for with those places.

[Kaleva]

15. If one is poor enough to get the free edition, deductions and breaks aren't a big deal

as one isn't paying taxes anyways

But I'm on SSDI and don't pay payroll taxes so defections and breaks beyond the standard ones don't apply to me.

[Kaleva]

14. I used TurboTax, federal & state, for free for years with no hassles

They try to upsell but it's really easy to decline.

[Bengus81]

17. You can't file for free having them do it

And I think that's the point. They kept claiming it was FREE when it wasn't. I've used them several years and actually like it but the FREE part was always a con and charging $30-50 to do a simple e-file to the IRS and then another fee for e-filing State is ridiculous.

I didn't "upgrade" to anything fancy because we're both retired. There were a couple of years it was over $100.00-$110.00 to do the taxes and have them filed by Turbo Tax. They were less last year but can't remember the charge.

[Kaleva]

19. Yes you can. I've used TurboTax for years where they filed for free

Then they texted me and emailed me when the federal and state returns were accepted by the IRS and Michigan Department of Treasury.

I've been using TurboTax to do my in-laws taxes too and they have never been charged either.

[XorXor]

20. I've had them do it for free for many years

I've only had to pay on years when I did significant amounts of work on 1099. But simple W-2 with a standard deduction has always been free for me.

[Bengus81]

21. They always charged me.......

I started using them in 2018. The reason was simple,we were both retired and our taxes are simple. I've never had one year where I could file for free. I know it was well over $100 most years to file both returns--seems like the State return was higher for whatever reason.

Last year it was somewhat cheaper only because they are getting competition from everywhere.

[XorXor]

22. Do you have SSA-1099, 1099-R or something like those since you're retired?

If so, I wonder if that is why. I only know about those situations because I had to help my parents with their taxes this year.