WASHINGTON (AP) — The U.S. Millions of Americans who qualified for free tax services but were duped into paying TurboTax will soon get compensation money in the mail.
Intuit Inc., TurboTax’s owner, was ordered to pay $141 million to 4.4 million taxpayers nationwide in a settlement last year. Those affected were low-income clients entitled to free, federally assisted tax services but paid TurboTax to complete their federal forms in 2016, 2017, and 2018 due to “predatory and deceptive marketing,” according to New York Attorney General Letitia James.
The May 2022 settlement, sponsored by James, was signed by all 50 states and the District of Columbia Turbotax.
Consumers who are eligible for reparation payments do not need to make a claim, according to the New York Attorney General’s Office. They will be notified by email from Rust Consulting, the settlement fund administrator, and will automatically receive a cheque.
Checks will be mailed beginning next week and continuing throughout May. The amount paid to each qualifying customer varies according to the tax years they qualify for.
“TurboTax’s predatory and deceptive marketing defrauded millions of low-income Americans who were attempting to fulfill their legal obligations to file their taxes,” James said in a statement released on Thursday. “Today, we are righting that wrong and putting money back into the pockets of hardworking taxpayers who should never have paid to file their taxes.”
Intuit Inc. agreed to cease TurboTax’s “free, free, free” ad campaign as part of last year’s settlement.
At the time of the May 2022 settlement, James stated that her investigation into Intuit was sparked by a 2019 ProPublica report that found the company using deceptive tactics to steer low-income tax filers away from the free, federal services they qualified for — and instead towards its commercial products.
Intuit Inc. agreed to cease TurboTax’s “free, free, free” ad campaign as part of last year’s settlement. According to documents obtained by ProPublica, executives at Intuit were aware of the implications of advertising free services that were only available to some.
According to an internal corporate PowerPoint presentation that ProPublica obtained, “the website lists Free, Free, Free, and the customers are assuming their return will be free.” “Customers are getting upset.”
Inuit referred The Associated Press to the business’s post-settlement agreement statement from May 2022 when contacted on Friday.
“Intuit is pleased to have reached a resolution with the state attorneys general that will ensure the company can return our focus to providing vital services to American taxpayers today and in the future,” Intuit senior vice president and general counsel Kerry McLean stated at the time.
SOURCE – (AP)
