Intuit offered a free version of TurboTax through the IRS’ Free File Program for low-income filers until 2021, when they quit the program, saying they wanted to “focus on further innovating in ways not allowable under the current Free File guidelines.” The FTC complaint was filed Monday in U.S. The FTC voted 3-1 in favor of filing the suit.
#TURBO TAX SOFTWARE CATEGORIES FOR FREE#
McLean said nearly 100 million Americans have filed taxes for free over the past eight years using TurboTax. “Far from steering taxpayers away from free tax preparation offerings, our free advertising campaigns have led to more Americans filing their taxes for free than ever before and have been central to raising awareness of free tax prep,” said Kerry McLean, executive vice president and general counsel of Intuit. Intuit, based in Mountain View, California, said in a statement late Monday night that it will challenge the lawsuit. READ MORE: Expiration of child tax credits hits home This year’s tax filing deadline is April 18. The FTC has asked a federal judge to order Intuit to stop what it said were Intuit’s deceptive ads during the rush of tax season. The agency says Intuit has for years focused on the word “free” in its ads, running them during major events like the Super Bowl. “We are asking a court to immediately halt this bait-and-switch, and to protect taxpayers at the peak of filing season.” “TurboTax is bombarding consumers with ads for ‘free’ tax filing services, and then hitting them with charges when it’s time to file,” said Samuel Levine, Director of the Bureau of Consumer Protection, in a statement. They are ineligible, the agency says, if they are gig workers or earn farm income, for example. The consumer protection agency said Tuesday that millions of consumers cannot actually use the free tax-prep software option - two-thirds of tax filers in 2020. The Federal Trade Commission is suing TurboTax maker Intuit, saying its ads for “free” tax filing misled consumers.
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