However, less than 3% of taxpayers used Free File in the 2020 tax year, IRS figures show. taxpayers to file their tax returns at no cost. Intuit has also said that a 'government-run pre-filled tax preparation system that makes the tax collector (who is also the investigator, auditor and enforcer) the tax preparer is fraught with conflicts of interest.'įree File, a partnership between the IRS and commercial tax-preparation companies, was intended allow about 70% of U.S. We are clear and fair with our customers and open and transparent about our advertising practices, and our participation in the Free File program was done in compliance and with the oversight of the IRS,' company spokesperson Derrick Palmer previously told CBS News.

'Over the past eight years alone, Intuit's free tax preparation offering has helped nearly 100 million Americans file their taxes completely free of charge. Intuit has previously defended its participation in the Free File program. They will automatically receive notices and checks by mail. Under the agreement, Intuit will provide restitution to consumers who started using the commercial TurboTax Free Edition for tax years 2016 through 2018 and were told that they had to pay to file even though they were eligible for the version of TurboTax offered as part of the IRS Free File program.Ĭonsumers are expected to receive a direct payment of approximately $30 for each year that they were deceived into paying for filing services, James said. 'The website lists Free, Free, Free and the customers are assuming their return will be free,' an internal company PowerPoint presentation said. The company also offers a commercial product called 'TurboTax Free Edition' that is only for taxpayers with 'simple returns,' as defined by Intuit.Īccording to documents obtained by ProPublica, Intuit executives knew they were deceiving customers by advertising free services that were not in fact free to everyone. Intuit withdrew from the program in July 2021. One version was through its participation in the Internal Revenue Service's Free File Program, geared toward taxpayers earning less than about $34,000 and members of the military. Intuit has offered two free versions of TurboTax.

Turbotax refund app