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Class-Action Lawsuit Says TurboTax Tricked Taxpayers Into Paying For 'Free' Tax Prep (gizmodo.com) 64

Less than a week after ProPublica found that TurboTax lied to taxpayers about its free filing program, "a new class action lawsuit against TurboTax maker Intuit claims the tax service breached its agreement with the Internal Revenue Service by intentionally obscuring its free filing service and charging qualifying taxpayers anyway," reports Gizmodo. From the report: The complaint was filed Sunday in a California district court on behalf of plaintiffs from three different states. TurboTax's free filing service is offered -- alongside programs from other tax companies -- in partnership with the IRS and is meant to benefit 70 percent of U.S. taxpayers with adjusted gross incomes of $66,000 or less. In TurboTax's case, the free filing service should be offered to those with adjusted gross incomes of $34,000 or less, per the IRS Free File Software page.

But according to the suit, TurboTax violated its agreement with the IRS by separating its free filing page from its primary service as well as by intentionally hiding the service from search engines -- and therefore qualifying taxpayers -- by altering its code, a discovery unearthed through ongoing investigations into TurboTax's practices by ProPublica. Additionally, TurboTax is accused of using language meant to lead taxpayers to believe that its primary service is free only to later charge them.
When asked about the lawsuit, a spokesperson for TurboTax said in a statement: "We are committed to offering Americans the ability to file their taxes for free, and we're committed to the IRS Free File program. More IRS Free File returns have been filed using a TurboTax product than any other of the member companies -- including approximately 1.2 million returns this tax season. We look forward to working with the IRS and private industry to improve the Free File program and help it continue to grow."
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Class-Action Lawsuit Says TurboTax Tricked Taxpayers Into Paying For 'Free' Tax Prep

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  • I'll say it again... (Score:4, Informative)

    by b0s0z0ku ( 752509 ) on Tuesday May 14, 2019 @09:32PM (#58594106)
    Free File Fillable Forms is more than 90% of taxpayers need, and is free for all income levels. It's as close to an IRS e-file system as there is, just fill out the fucking forms rather than playing "200 questions."
    • by Burdell ( 228580 ) on Tuesday May 14, 2019 @10:41PM (#58594262)

      You mean the site that the IRS is forced to contract out (because Intuit lobbies Congress to prevent the IRS from running that directly)? They try hard to hide it (a site like this shouldn't be allowed to have a private domain registration for example), but it is run by... Intuit! They don't even have to run ads or try to milk users to pay for unneeded software, because they get guaranteed money from the IRS.

      • by AmiMoJo ( 196126 ) on Wednesday May 15, 2019 @07:54AM (#58595356) Homepage Journal

        As an outside observer... How is a first world country like America this corrupt?

        • Re: (Score:2, Insightful)

          by Anonymous Coward
          because corporations
        • by Merk42 ( 1906718 )
          Because it works out for those that are corrupt, they never face repercussions since the corruption extends to those that would punish them too.
        • Republicans and some Dems who believe businesses should have a part to play in governmental affairs/public works. Obviously it tends to end badly most of the time.
        • by RAHH ( 5900166 )
          The same .1% that pull our strings are the same that pulls yours. Don't be so naive and act like corruption isn't on a global scale at this point.
        • Comment removed based on user account deletion
        • As an outside observer as well, I wondered this for a while. The answer is America is not a first world country.

          Only Burma, Liberia, and the USA don't use metric. No first world countries on that list. 187 countries just signed an accord to cut single-use plastic. Take a guess if the US signed. Every first would country is working to eliminate coal use, America is doubling-down on coal. Most Americans have no vote in presidential elections. If you're from most states, your vote is irrelevant thanks
    • Yeah, TurboTax tried to trick me too, but as soon as they started bombarding me with bullshit I backed away, and went back to freefillableforms dot com.

      The IRS (I'm assuming because TurboTax has some "friends" in Congress) uses language that makes it sound like freefillableforms is only for high income brackets, but anybody can use it.

      I've already decided; if they take that away from me, I'm mailing it in on paper. I just have no appetite for extra online bullshit. No, I don't want to get cybered by your ma

      • The correct Internet address: Free File: Do Your Federal Taxes for Free [irs.gov].

        One of the links from that IRS page: Start Free File Fillable Forms Now [freefilefi...eforms.com], FreeFileFillableForms.com, NOT "freefillableforms dot com".
      • by pnutjam ( 523990 )
        I've been using DIY tax for afew years. [slashdot.org] It's run by liberty tax, those guys with the dancing Statue of LIberty out front. They've never tried to upsell me or interfere with my taxes, but their UI has been screwy a couple times.
  • I had an offer for an amazing package deal for home phone, cable, and internet that arrived faithfully for years as junk mail in the mailbox.

    AT&T had a 200 pair line cut, and after tens of minutes of my life that I'll never get back, they offered to restore internet and phone service within 3 weeks. That seemed unreasonable to me, since I'm not living in Puerto Rico after a hurricane. Too soon?

    Long story short, I contracted with the internet company that had been fluffing up my mailbox volume for a spec

  • by Anonymous Coward

    jesus fucking christ how can americans consistently fuck stuff up so badly by excessive deference to the Free Market?

    Look.

    It's utterly fucking obvious that the state should provide a free and comprehensive online filing service free gratis to all taxpayers which share exactly the same ruleset, calculation algorithms, data exchange formats.

    How have you reached the point that regulatory capture of such an essential, utterly basic state interest as paying taxes, means you have lobbyists and congressmen activel

    • Re: (Score:2, Interesting)

      by Anonymous Coward

      1000000000000000 thumbs up for this post. They create a tax code so incomprehensible that you need the "free market" to create an entire industry. Sounds like medical insurance. In sane countries, your tax bill is $0. Why? Because you had your taxes deducted from your paycheck all year long. End of the year tax time? I owe $0. I already paid it.

      BUt amerikkkans are stupid enough to vote for trump, so there's no fixing it.

    • How have you reached the point that regulatory capture of such an essential, utterly basic state interest as paying taxes...

      The United States reached that a long time ago.
      I mean let's face it they're pretty clueless. We are talking about the country that elected Ronald Reagan, then did it again.
      Not ashamed enough by that they elected George Bush II then did that again. (No, it's true)
      Regulatory capture is what the US government is for. George II even had the oil industry write his energy policy. Look it up, it's true.

  • Anyone remember when Intuit TurboTax silently wrote to sector 33 as part of license activation. It did so without doing anything to confirm the sector was not already in use. If the customer uses a boot loader including boot sector based BIOS extenders (popular at the time to support hard drives larger than the system BIOS normally supported), then Intuit TurboTax would make the machine unbootable. Several customers lost full functionality of their computer and lost data when PC sellers demanded to do a

  • I used to use both Quicken and TurboTax, but gave up on them when Intuit made the shift to being online focused. After reading the customer agreement and combined with their sketchy marketing, I didn't trust them with my financial data.
  • by Anonymous Coward

    So TurboTax, with their absolutely annoying "free, free, free....free free" commercials was lying. What a surprise that Intuit would do that.

    Then you have Quicken which Intuit developed and sold off to H.I.G. Capital. They've now changed the software so that unless you pay a yearly subscription fee to use it, it will no longer connect to your bank and pull the transactions. So versions that we paid for and had installed stopped working unless we agreed to the yearly subscription fee.

    When I ran into this

    • by habig ( 12787 )

      It is possible to hit the bank website and pull the daily transactions down in a file an import them but that is also made overly complicated.

      "The old Quicken I flat out bought won't work now that there is a subscription service" is real sleaze. The suggestion above doesn't work for me: you can't even get the file directly from the bank and import it, if the download is in Quicken format: the software still refuses to import the download. There are converters for the Microsoft format banks also provide, but they don't seem too much less predatory than Quicken itself.

      Has anyone come across a good solution for this, including switching to a whole

      • Not only did I not find anything that could import quicken data reliably, I couldn't find a good replacement overall! :(

        - Yo Grark

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