TurboTax customers will receive $141 million after a ‘predatory’ company lured them away from free tax filing services – so are YOU eligible for a payout?
- Millions of TurboTax customers are receiving settlement checks this month
- Firm was charged with “predatory” marketing that lured customers away from free IRS tax filing services
- Victims will each receive between $29 and $85 depending on how many tax years they have used TurboTax
Millions of Americans tricked by an online company into paying for tax filing services that should have been free will receive a check this month.
Website TurboTax was accused of launching “predatory” and “misleading” marketing campaigns that lured customers away from free Internal Revenue Service (IRS) services.
The company put its own tax filing process as “free, free, free” in an advertising campaign, but would then charge customers with “upgrades” and additional costs they didn’t need.
Last year it was ordered to pay $141 million to the 4.4 million affected customers.
Now victims have started receiving their settlement money, with payments ranging from $29 to $85 depending on how many tax years they qualify for.
TurboTax was accused of launching ‘predatory’ and ‘misleading’ marketing campaigns that lured customers away from free services
TurboTax would have lured low-income households that were eligible to use the IRS’s free filing program.
After promising a free service, TurboTax claimed that each customer’s return fell short of the definition of “easy” to file.
Customers were then given the option to pay for a “deluxe” package — which cost $39 for a federal filing — or a more expensive “premier” package for $69.
Self-employed people were charged $89 for a federal filing. Additional fees were charged for employees who had to file a separate state filing – something most states require.
Victims used the service to file their returns for the 2016, 2017 and 2018 tax years.
The case against TurboTax and its parent company Intuit was led by New York Attorney General Letitia James
In a statement last week, James said “TurboTax’s predatory and deceptive marketing defrauded millions of low-income Americans who were trying to meet their legal obligations to file their taxes.”
“Today, we’re righting that injustice and putting money back into the pockets of hard-working taxpayers who should never have had to pay to file their taxes.”
Eligible claimants do not have to file a claim themselves to receive the money.
They are notified via email from Rust Consulting – which manages the settlement fund – and automatically receive a check.
Many have already received the email, and checks will be physically mailed starting next week, through the end of May.
TurboTax was forced to pay $141 million after it misled its customers by charging for services that should have been free. The topic has been discussed a lot on TikTok
James’s case against TurboTax was sparked by an investigation by news site ProPublica, which revealed that the company preyed on low-income families.
The piece included an excerpt from a TurboTax Power Point presentation that admitted, “The website states free, free, free and the customers assume their return will be free.
“Customers get upset.”
The slide also admitted that the “agents suggest an upgrade for customers if they don’t need it.”
At the time, Intuit was led by former CEO Brad Smith, who stepped down in 2018.
During his time in the position, the value of his stake in the company increased from $20 million to $220 million. Intuit’s current CEO is Sasan Goodarzi.
The CEO of Intuit, TurboTax’s parent company, is currently Sasan Goodarzi, pictured
Intuit was formerly led by leftist CEO Brad Smith, whose net worth rose from $20 million to $220 million during his time in the position. Intuit’s co-founder Scott Cook, right, is currently worth $4.3 billion
Meanwhile, the company’s co-founder Scott Cook is currently worth $4.3 billion Forbes.
When contacted by Dailymail.com, Intuit reiterated its statement it made following the May 2022 settlement agreement.
“Intuit is pleased to have reached a resolution with the U.S. Attorney that will allow the company to refocus our attention on providing vital services to American taxpayers today and in the future,” said Kerry McLean, executive vice president and general counsel of Intuit.