Intuit TurboTax is a popular tax preparation software used by millions of Americans to file their tax returns. Recently, Intuit has agreed to pay a settlement of $40 million to customers who were affected by alleged deceptive advertising practices. In this article, we will discuss the details of the Intuit TurboTax Settlement and what it means for taxpayers.
What is the Intuit TurboTax Settlement?
The Intuit TurboTax Settlement is a settlement agreement between Intuit and its customers who were allegedly deceived by the company’s advertising practices. The settlement agreement resolves a class-action lawsuit filed against Intuit, which accused the company of falsely advertising that its online tax preparation software was free, when in fact, customers had to pay to file their state tax returns.
As part of the settlement agreement, Intuit has agreed to pay $40 million to eligible customers who were affected by the deceptive advertising practices. The settlement also requires Intuit to make certain changes to its advertising practices to ensure that customers are not misled in the future.
Who is eligible for the settlement?
Customers who used Intuit TurboTax to file their state tax returns between January 12, 2015 and May 28, 2021 may be eligible for the settlement. To be eligible, customers must have paid to file their state tax returns and must have used TurboTax’s Free Edition or TurboTax’s Basic Edition with a state filing fee.
The settlement administrator will send notices to eligible customers in the coming months, and customers will have the opportunity to submit a claim for compensation. The amount of compensation that each customer will receive will depend on the number of eligible claims that are submitted.
What changes will Intuit make to its advertising practices?
As part of the settlement agreement, Intuit has agreed to make certain changes to its advertising practices to ensure that customers are not misled in the future. These changes include:
- Providing clear and prominent disclosures about the fees associated with using TurboTax’s online tax preparation software
- Providing clear and prominent disclosures about the fees associated with filing state tax returns
- Ensuring that customers are not charged unexpected fees during the tax preparation process
- Providing customers with a clear and easy-to-understand explanation of the difference between TurboTax’s Free Edition and its paid versions
Intuit has also agreed to establish a $6.5 million fund to support programs that promote financial literacy and education.
What does the settlement mean for taxpayers?
The Intuit TurboTax Settlement is a significant development for taxpayers, as it holds companies accountable for their advertising practices. The settlement serves as a reminder to companies that they must be transparent and honest in their advertising practices, and that they will be held responsible if they deceive their customers.
For eligible customers, the settlement provides an opportunity to receive compensation for the fees they paid to file their state tax returns. Customers who are eligible for the settlement should keep an eye out for notices from the settlement administrator and should submit a claim for compensation when they receive the notice.
Conclusion
The Intuit TurboTax Settlement is a significant development in the world of tax preparation software. The settlement holds companies accountable for their advertising practices and serves as a reminder that companies must be transparent and honest in their advertising. For eligible customers, the settlement provides an opportunity to receive compensation for the fees they paid to file their state tax returns. If you are an eligible customer, be sure to keep an eye out for notices from the settlement administrator and submit a claim for compensation when you receive the notice.
