According to Attorney General Keith Ellison, Minnesotans could receive up to $1.8 million in refunds as a result of a court settlement with the developer of tax-filing software TurboTax.
According to Ellison’s office, up to 60,000 state residents may be eligible for reimbursements after software manufacturer Intuit Inc. misrepresented its program as free. As part of a $141 million settlement agreement with all 50 states and Washington, D.C., the corporation must pay reparations to millions of consumers and cease deceptive advertising.
“Protecting Minnesotans from predatory firms is part of my responsibility in assisting people in financing their lifestyles.” “Because Intuit’s business tactics deceived Minnesotans, I joined this investigation and settlement,” Ellison said in a statement. “The settlement we’ve reached will put money back in the pockets of low-income individuals who were duped into paying for tax-preparation services that Intuit should have provided for free,” the plaintiff says.
According to Ellison’s office, Intuit has a long-standing agreement with the IRS under which it was supposed to provide free tax filing services to low-income taxpayers. The IRS will not develop its own free application to compete with Intuit or other tax service providers, according to the agreement.
According to the release, the program “TurboTax Free Edition” was only free to about one-third of US users, and this was not adequately disclosed.
The settlement agreement covers customers who used the free version of TurboTax from 2016 to 2018. Users who were charged fees despite being told the program was free would receive approximately $30 for each year they filed and paid fees. Minnesota residents who qualify will be eligible for a partial refund. Customers affected will receive a refund notice and a check in the mail.
As part of the settlement, Intuit must also discontinue its “free free free” advertising campaign and be more transparent about any costs that may arise when using its software.