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“The website lists Free, Free, Free and the customers are assuming their return will be free,” an internal company PowerPoint presentation said. The company also offers a commercial product called “TurboTax Free Edition” that is only for taxpayers with “simple returns,” as defined by Intuit.Īccording to documents obtained by ProPublica, Intuit executives knew they were deceiving customers by advertising free services that were not free to everyone. Story continues Program is not really free to everyone Intuit withdrew from the program in July 2021, saying in a blog post that the company could provide more benefits without the program's limitations. One was through its participation in the IRS Free File Program, geared toward taxpayers earning roughly $34,000 and members of the military. Until last year, Intuit offered two free versions of TurboTax. Representatives for Intuit said in a blog post Wednesday that “Intuit already adheres to most of these advertising practices and expects minimal impact to its business from implementing the remaining changes going forward." "This agreement should serve as a reminder to companies large and small that engaging in these deceptive marketing ploys is illegal." 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," James said in a statement. "For years, Intuit misled the most vulnerable among us to make a profit. Intuit will pay for 'Scamming millions of taxpayers' Some low-income filers didn't use federally supported free tax services. WHERE'S MY REFUND TOOL: Taxpayers waiting for refunds find little help from IRS 'Where's My Refund' tool TWO-YEAR WAIT: We fought the IRS, sort of, and finally got someone to answer the phone The Fed announced these aggressive moves to fight it INFLATION FIGHT: Inflation is at a 40-year high. James said her investigation into Intuit was sparked by a ProPublica report in 2019 that found the company used deceptive tactics to steer low-income tax filers away from the federally supported free services for which they qualified – and toward Intuit's own commercial products. Under the terms of a settlement signed by the attorneys general of all 50 states, Mountain View, California-based Intuit will suspend TurboTax’s “free, free, free” ad campaign and pay restitution to nearly 4.4 million taxpayers, New York Attorney General Letitia James said. NEW YORK – The company behind the TurboTax tax-filing program will pay $141 million to customers deceived by misleading promises of free tax-filing services, New York's attorney general announced Wednesday.
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