TurboTax’s parent company Intuit has reached a nationwide settlement, requiring them to pay compensation to approximately 4.4 million individuals.
The settlement comes after allegations that the company directed millions of low-income Americans away from free tax-filing services. Recipients will receive checks automatically mailed this month, with the majority expecting around $30, while long-term TurboTax users could receive up to $85.
New York Attorney General Letitia James strongly criticized TurboTax’s “predatory and deceptive” marketing practices, emphasizing that the company’s actions had exploited low-income taxpayers who were attempting to fulfill their legal obligation to file taxes.
The investigation into TurboTax’s practices was prompted by a 2019 report by ProPublica, which accused the company of deliberately steering eligible clients away from government-supported tax filing services by making them difficult to find online.
Intuit denies wrongdoing as part of the settlement agreement and does not anticipate significant negative effects on its business operations due to the demanded changes in the future. A dedicated website has been established to provide more information on the settlement.
The sources for this piece include an article in CNN.