Tennessee and New York lead lawsuit against TurboTax owner Intuit

Published: May. 4, 2022 at 1:18 PM CDT
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NASHVILLE, Tenn. (WSMV) - Tennessee Attorney General Herbert H. Slatery III announced, along with New York Attorney General Letitia James, Wednesday to secure $141 million from the owner TurboTax, Intuit Inc.

The settlement comes after the company allegedly deceived consumers into paying for tax services that both Attorney Generals agreed should have been free. All 50 states and the District of Columbia have now signed the agreement.

Officials said approximately 111,000 consumers in Tennessee would be eligible to receive payments of about $30 for each year during tax years 2016-2018; they used a paid TurboTax product when they qualified to file free through the IRS program.

“The last thing anybody needs at tax time is more confusion and complexity over filing,” said General Slatery. “I appreciate working with New York Attorney General Letitia James and coordinating with our fellow attorneys general on this settlement.”

The investigation revealed that Intuit engaged in several deceptive and unfair trade practices that limited consumers’ participation in the IRS Free File Program.

Officials added that the company created confusion by using similar names for its IRS Free File product and its commercial “freemium” product. AG Slatery added that Intuit purposely blocked its IRS Free File landing page from search engine results during the 2019 tax filing season.

To learn more about the settlement, click here.

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