TurboTax users are soon set to receive money from a nationwide $141 million settlement with Intuit Inc., the company behind TurboTax.
The Associated Press reported that under the terms of the settlement, which was signed by the attorneys general of all 50 states, the California-based company would suspend TurboTax’s “free, free, free” ad campaign.
Nearly 4.4 million taxpayers were affected and will receive restitution.
The Federal Trade Commission filed a complaint in March, and the settlement was reached in May.
You do not need to claim the money. Here is how the Indiana attorney general's office says payment would work:
- A settlement administrator will be hired to handle restitution payment
- Intuit will provide the settlement administrator with the list of affected consumers and their last known addresses.
- The administrator will identify current mailing addresses for them and send mail or email to each consumer providing notice of the settlement
- A process by which the consumer can request electronic payment instead of payment by check, if preferred, will be established.
- Checks will be mailed, or electronic payments will be made.
- The settlement administrator will send reminders about uncashed checks and re-issue checks as necessary.
"Most tax filers can’t use the company’s “free” service because it is not available to millions of taxpayers, such as those who get a 1099 form for work in the gig economy or those who earn farm income,” the FTC said.
The commission alleged in 2020, for example, approximately two-thirds of tax filers could not use TurboTax’s free product.
As WRTV reported in January, TurboTax opted out of the IRS Free File program, a public-private program that lets you prepare and file your federal income tax online using guided tax preparation, or you can file at an IRS partner site.
Earlier this year, Intuit told WRTV that its $0 Any Way program would allow 60 million people with simple federal and state taxes to file for free.
Several companies offer IRS Free File, but TurboTax and H&R Block no longer participate.
Michelle Kaufman and Kara Kenney at WRTV first reported this story.