ST PAUL, Minn. — Minnesotans who used TurboTax could be eligible to receive money after the company behind the tax-filing program was ordered to pay restitution to customers across the United States.
Minnesota Attorney General Keith Ellison announced on Thursday that more than $1.8 million in refunds will be granted to low-income taxpayers.
“Part of my job of helping Minnesotans afford their lives is protecting them from predatory corporations. I joined this investigation and settlement because Intuit’s business practices defrauded Minnesotans. The settlement we’ve reached will put money back in the pockets of low-income consumers that Intuit deceived into paying for tax-preparation services that should have been free,” Ellison said in a press release. “The settlement also cracks down on Intuit’s egregiously fraudulent practices and prohibits the company from engaging in them in the future. Make no mistake: I’m prepared to take action against companies that deliberately deceive Minnesotans, like Intuit did for
Under the terms of the settlement agreement, which was a result of an investigation that lasted nearly two years, Intuit, Inc. will no longer use their "free, free, free" ad campaign, and will pay restitution to millions of customers who used TurboTax Free Edition for tax years 2016 through 2018 and were told that they had to pay to file even though they were eligible for the version of TurboTax offered as part of the IRS Free File program.
According to the Associated Press, New York Attorney General Letitia James said her investigation into Intuit was sparked by a 2019 ProPublica report that found the company was using deceptive tactics to steer low-income tax filers away from the federally supported free services for which they qualified — and toward its own commercial products instead.
Customers who are eligible for restitution are expected to receive checks for about $30 each year they filed through direct deposit or by checks in the mail.
Intuit has offered two free versions of TurboTax. One was through its participation in the Internal Revenue Service's Free File Program, geared toward taxpayers earning roughly $34,000 and members of the military. Intuit withdrew from the program in July 2021. The company also offers a commercial product called “TurboTax Free Edition” that is only for taxpayers with “simple returns,” as defined by Intuit.
According to documents obtained by ProPublica, Intuit executives knew they were deceiving customers by advertising free services that were not in fact free to everyone.
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