![]() ![]() ![]() The program was meant as a compromise between the public and private sectors, ensuring that a public, free tax preparation service didn't run private providers out of business while still allowing middle and low-income Americans to benefit from a government service. Another element of the agreement stipulated that the company would only offer its free services to between 10% and 50% of these eligible low-income tax payers. The Free File program, established in 2003 between the IRS, Intuit and several other tax service providers, stated that Intuit and other providers would offer free tax preparation services to Americans with an adjusted income equal to or less than that of 70% of all U.S. “For years, Intuit misled the most vulnerable among us to make a profit." "Intuit cheated millions of low-income Americans out of free tax filing services they were entitled to,” James said in a statement Wednesday. However, only customers who the company defined as having "simple" returns which could be filed using a 1040A or 1040EZ tax form were eligible to use these products.Īll other consumers who inquired after the "freemium" software were instructed they had to upgrade to paid versions of TurboTax, which can cost up to $120, despite many of these paid services being available for free via the IRS Free File program. Under this "freemium" strategy, customers are encouraged to use the company's TurboTax Free Edition and Federal Free Edition software, which automates several steps of the tax filing process and advises consumers on how to maximize their potential returns. Since at least 2016, Intuit has marketed "freemium" TurboTax software products to eligible taxpayers - as defined by TurboTax - in all 50 states. Intuit told Courthouse News Wednesday afternoon that as part of the agreement, it admitted no wrongdoing. ![]() (CN) - New York Attorney General Letitia James announced Wednesday morning that Intuit Inc., the parent company of TurboTax, has agreed to pay $141 million to settle claims that it deceived millions of low-income U.S. ![]()
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