Maryland Attorney General Anthony G. Brown has announced that eligible consumers who were misled by Intuit, the owner of TurboTax, into paying for free tax services will begin receiving checks from a $141 million multistate settlement announced in May 2022. The settlement was signed by all 50 states and the District of Columbia.
Approximately 4.4 million consumers nationwide will receive checks in the mail from the settlement, with Maryland receiving $2,188,255.93 for 71,950 affected consumers. Eligible consumers will be contacted by email about the settlement, and checks will be mailed throughout May 2023.
Consumers who paid to file their federal tax returns through TurboTax for tax years 2016, 2017, and 2018 but were eligible to file for free through the IRS Free File Program are eligible for a payment. These consumers will automatically receive a check in the mail without filing a claim. The settlement fund administrator, Rust Consulting, will notify eligible consumers by email, with checks expected to be mailed out starting next week.
The amount each consumer receives will depend on the number of tax years for which they qualify. For more information about who is covered by the settlement and information about the settlement fund, consumers can visit www.AGTurboTaxSettlement.com.
The settlement comes after Intuit faced allegations of deceiving taxpayers by steering them away from the free IRS Free File Program and toward its paid services. The company was accused of hiding the free filing option from consumers, making it difficult to find and using deceptive marketing tactics to make it appear that taxpayers had to pay for its services.
The settlement agreement requires Intuit to change its business practices and display the Free File Program on its website prominently. The company will also be required to provide clear information about its paid services and stop using deceptive marketing language.
In a statement, Maryland Attorney General Brown said, “Taxpayers should never have to pay for services that are available to them for free. This settlement conveys to all tax preparation companies that misleading consumers will not be tolerated. We will continue to hold companies accountable for their actions and protect consumers from deceptive practices.”
Intuit has also faced criticism in recent years for its lobbying efforts against efforts to simplify the tax filing process and create a government-run system for tax preparation. The company has been accused of working to preserve the status quo and protect its profits at the expense of taxpayers.
The settlement is a significant win for consumers who were misled by Intuit and highlights the need for transparency and accountability in the tax preparation industry. As tax season approaches, it’s important for consumers to be aware of their options and to take advantage of free resources when available.
