TurboTax to Pay $141M Settlement Over 'Deceiving' Millions of Low-Income Americans

The Washington Post reports:TurboTax will begin sending checks next week to nearly 4.4 million low-income Americans whom the company deceived into paying for tax services that should have been free, New York Attorney General Letitia James said. The checks, part of a $141 million settlement reached in May 2022 between TurboTax owner Intuit and all 50 states and the District of Columbia, are for people who were eligible to file taxes for free through an IRS partner program but were "tricked" into paying TurboTax between 2016 and 2018, James (D) said in a statement Thursday. The company was also accused of knowingly misleading customers and blocking its landing page for its IRS Free File Program, a public-private partnership with the IRS, from showing up on search engines such as Google. Because Intuit and other companies agreed to participate in that program, the IRS agreed not to offer its own free electronic tax services. Intuit admitted no wrongdoing in the settlement. Customers who qualify will receive between $29 and $85, depending on the number of years they paid for the services... Consumers who are eligible for the payments do not need to file a claim and will be notified by email, James's office said Thursday. Checks will be sent automatically and will be mailed throughout May. "TurboTax's predatory and deceptive marketing cheated millions of low-income Americans who were trying to fulfill their legal duties to file their taxes," said Attorney General James. "Today we are righting that wrong and putting money back into the pockets of hardworking taxpayers who should have never paid to file their taxes." James described it as an effort "to stand up for ordinary Americans and hold companies who cheat consumers accountable," specifically calling out Intuit "for deceiving millions of low-income Americans into paying for tax services that should have been free."

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