Consumers are expected to receive a direct payment of approximately $30 for each year that they were deceived into paying for filing services.
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.
“The website lists Free, Free, Free and the customers are assuming their return will be free,” an internal company PowerPoint presentation said. “Customers are getting upset.”Under the agreement, Intuit will provide restitution to consumers who started using the commercial 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.
Consumers are expected to receive a direct payment of approximately $30 for each year that they were deceived into paying for filing services, James said. They will automatically receive notices and checks by mail. “We empower our customers to take control of their financial lives, which includes being in charge of their own tax preparation,” an Intuit spokesperson told ProPublica in a statement in 2019.
The spokesperson added that a “government-run pre-filled tax preparation system that makes the tax collector the tax preparer is fraught with conflicts of interest.”
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