Have you used TurboTax to file your taxes? Well, with the new settlement that just took place, Intuit, the owner of tax filing software TurboTax, has agreed to pay $141 million in a settlement with all 50 states.
Intuit has been accused of steering millions of low-income Americans away from free tax-filing services provided by the IRS.
For years TurboTax has been apart of the IRS Free File program as a partner which lets you prepare and file your federal income tax online using guided tax preparation. It's safe, easy and no cost to you for a federal return.
The settlement was recently announced by New York Attorney General Letitia James. James said about 4.4 million customers were "unfairly charged." Intuit must also suspend its "free, free, free" ad campaign because it falsely lured customers with the promise of free tax preparation services.
Senator Elizabeth Warren of Massachusetts recently shared her thoughts on Twitter and calls for change on higher levels.
In a statement, Intuit (INTU) said that it "admitted no wrongdoing" as part of the agreement and it expects "minimal impact to its business" from the changes demanded in the future.
"Intuit cheated millions of low-income Americans out of free tax filing services they were entitled to. For years, Intuit misled the most vulnerable among us to make a profit. Today, every state in the nation is holding Intuit accountable for scamming millions of taxpayers, and we're putting millions of dollars back into the pockets of impacted Americans." New York Attorney General Letitia James
Next Step If You Think You Are Getting Money Back
If you think Intuit owes you money, you don't need to take any action, according to Halimah Elmariah, a spokesperson for the New York State Attorney's Office. Eligible TurboTax users will receive notification, either in an email or letter. So, just be on the lookout for any new updates in your inbox as well as your mail box.
What do you think about this settlement? Have you ever used TurboTax?
Feel free to share your thoughts in the comments.