TurboTax Lawsuit Filed Against Intuit

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A new lawsuit has been filed against TurboTax, accusing the company of breaking state laws regarding consumer protection. The complaint alleges that the online company violated California’s Unfair Competition Law, the Customer Records Act, and New York’s Consumer Fraud Act. Several plaintiffs have asked the courts to issue injunctions and monetary damages, claiming that the company deceived consumers by overcharging them for services.

According to the complaint, Intuit violated the terms of its agreement with the IRS by misrepresenting the free filing option. It also allegedly used an elaborate marketing campaign to lure potential customers away from free options. The company has previously admitted to engaging in a “bait and switch” scheme by misleading people about the existence of a free filing option. The court found that the companies failed to live up to the terms of their agreements with the IRS and that this is evidence of their intentional misrepresentations.

The lawsuit claims that Intuit’s wrongful actions led to the emergence of fraudulent returns.

Intuit’s failure to detect and report fraudulent returns is a violation of the law. The company’s failure to take these steps led to thousands of wrongful returns filed by customers using TurboTax. Furthermore, the software’s security measures did not meet the standards required by the IRS. The faulty data security system and inadequate information management procedures allowed the fraud to flourish.

The TurboTax lawsuit claims that Intuit violated the terms of its contract with the IRS by intentionally diverting qualified customers away from its free filing option. Specifically, the company has allegedly programmed its website so that its free option is hidden from potential customers. The plaintiffs claim that the “Free Guaranteed” program is unaffordable and diverted tax-payers to its paid products. Additionally, their competitors have spent millions lobbying the IRS to create a free system for filing taxes.

The plaintiffs allege that Intuit deceived taxpayers into purchasing its software.

Intuit has voluntarily donated its software to the IRS Free File Program, which allows low-income taxpayers to file their taxes without paying any fees. However, the company claims that the free version of TurboTax was never available. Implementing this system, it is allowing consumers to pay for the software instead of merely downloading it, but then it also forced the customers to pay for the free filing version.

Intuit has also been accused of violating its agreement with the IRS. Specifically, the company allegedly deceived ninety million customers by implementing fake accounts and filing fraudulent returns under a false name. The company was also instructed not to flag fraudulent accounts as such. Intuit’s decision has now been thrown out, and the case is still pending. It will be interesting to see whether the case will be resolved in court.

Intuit faces a class-action lawsuit over TurboTax.

The plaintiffs allege that Intuit is violating the agreement with the IRS and intentionally driving away customers with false claims that TurboTax is a scam. It has even pleaded guilty to fraudulent practices to boost its revenue. Those who are looking for free tax filing should consider filing a TurboTax lawsuit today. These suits are a symptom of the company’s ethics problems, and will ultimately affect the company’s revenue.

The lawsuit also claims that Intuit violated its contract with the IRS by deceiving millions of people into paying for TurboTax products. The company says that the lawsuit will not be successful and that it would not have worked if it had followed proper commercial practices. Intuit has been fined $40 million in two previous cases involving its tax-filing products. If the court rules against TurboTax, the company is likely to face a court case.

Hundreds of other customers have also filed lawsuits against TurboTax. Some of the plaintiffs allege that the software has been fraudulent for years.

The company has also refused to notify its clients about the fraud. While the companies are attempting to settle their claims with a $40 million settlement, many consumers have not been satisfied with the results. Intuit has not responded to the allegations made in the suit. In addition to the allegations of unfair business practices, the court found that Intuit failed to follow the rules governing consumer rights.

5 thoughts on “TurboTax Lawsuit Filed Against Intuit

  1. Here are my chat records stating my taxes would be filed. I waited weeks then logged on again. I was told I had to pay $178.00 to complete. I asked about the “free filing” good until March 31st. I was told I did not qualify. I had no choice but to pay.
    I am through with forms. Does turbo send tax info to government

    TurboTax Assistant
    Gotcha. I have plenty of answers related to tax forms
    Select from the following for more help
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    See more answers for ‘I am through with forms. Does turbo send tax info …
    (me)I am through with forms. Does turbo send tax info to government

    TurboTax Assistant
    OK, I found some answers from the TurboTax Community for that…
    Important offer details and disclosures
    How should I file my taxes as a dual-status alien?
    Which TurboTax do I need to file a return for an estate?
    If I filed with turbo tax will I get a stimulus check direct deposited in m…
    Did any of these answer your question?
    (me)No, talk to a person

    TurboTax Assistant
    It looks like you previously asked for help with ‘I am through with forms. Does turbo send tax info to government’
    Is this what you’d like to talk to a specialist about?
    (me)Yes, that’s it!
    No, something else
    Ayuda en español
    (me)I am through with forms. Does turbo send tax info to government

    TurboTax Assistant
    I’ve got a specialist who can call you in about 5 minutes, or you can live chat with a specialist who will be available in about 9 minutes
    What would you like to do?
    (me)Live chat

    TurboTax Assistant
    Is your current email address still [email protected]?
    (me)Yes, this is correct

    TurboTax Assistant
    Thank you! We have everything we need to set up your live chat with an expert
    Select the option below whenever you’re ready to begin the connection
    Start the live chat

    TurboTax Assistant
    Great, I’m connecting you with a specialist. This should take about 9 minutes but may vary based on contact volume.

    You can keep chatting with me while you wait. When the specialist’s ready, they’ll jump in
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    You are now connected to TurboTax Specialist

    TurboTax Specialist
    Feb 17, 11:09 AM

    TurboTax Specialist
    Thank you for chatting in with Turbo Tax! My name is Justin! With whom am I speaking with today?
    (me)I am through with forms. Does turbo send tax info to government
    beverly hall

    TurboTax Specialist
    It is very nice to meet you Beverly! And yes we will transmit your return to the IRS for verification. 🙂
    (me)does the verification mean turbo is filing , federal and state

    TurboTax Specialist
    That is indeed correct!
    (me)thank you.. so do I sign out now and it is taken care of

    TurboTax Specialist
    Now to sign out there will be a button at the bottom left of your page!
    thanks

    TurboTax Specialist
    Is there anything else I may assist you with to make sure you had a great experience with TurboTax? 🙂
    (me)is there a confirmation number

    TurboTax Specialist
    You should receive it VIA email when the return has been accepted! 🙂
    (me)thank you

    TurboTax Specialist
    It has been my pleasure! You may receive a survey after our chat. Please respond based on your experience with me today. Thank you for choosing TurboTax Live, and have a great day!
    The specialist has left the conversation

  2. I’m a Massachussetts resident. I’ve used Turbo tax since at least 2000 through 2020. It always bothered me that they enticed me to use their product as “free” but then at the end of file completion they charge a fee for using their free product.
    Will I be entitled to a lawsuit refund? If so, how do I access this procedure. Thank you, William Mason

  3. My refund is short $2,800.00 from t.p.g. through Turbo tax Turbo tax wont help me ive been customer 10 + years got premium service at extra cost now they tell me to call IRS which is impossible to get through sat on hold 6 hours yesterday I did not agree to this tpg company nor the extra charges.

  4. I have been using TurboTax since 2016. I did receive the free filing, but only if my return was less then $1500, but once my returned increase it started saying I didn’t qualify for free filing and had to pay 80-200 to file. I never received to settlement for using turbotax

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