Attorney General Keith Ellison said Thursday that Minnesotans could receive up to $1.8 million in refunds as a consequence of a court settlement with the developer of tax-filing software TurboTax.
According to Ellison’s office, up to 60,000 state residents would be eligible for reimbursements after software producer Intuit Inc. deceptively promoted its program as free. The corporation must pay reparations to millions of consumers and stop deceptive advertising as part of a $141 million settlement agreement with all 50 states and Washington, D.C.
“Protecting Minnesotans against predatory firms is a part of my duty in helping people finance their lifestyles.” Intuit’s business tactics deceived Minnesotans, therefore I joined this inquiry and settlement,” Ellison stated in a statement. “The settlement we’ve achieved will put money back in the wallets of low-income individuals who were duped into paying for tax-preparation services that should have been free by Intuit,” says the plaintiff.
According to Ellison’s office, Intuit has a long-standing arrangement with the Internal Revenue Service under which it was supposed to provide a free tax filing service for low-income taxpayers. According to the agreement, the IRS will not establish its own free application to compete with Intuit or other tax service providers.
The program “TurboTax Free Edition” turned out to be free to just around one-third of US users, according to the release, and did not sufficiently disclose this.
Customers who utilized the free version of TurboTax from 2016 to 2018 are covered by the settlement agreement. Users who were charged costs while being informed the program was free would get around $30 for each year they filed and paid fees. Minnesotans who qualify will receive a partial refund. Customers who are affected will get a refund notice and a cheque in the mail.
Intuit must also discontinue its “free free free” advertising campaign and be more clear about any costs that may occur when using its software as part of the settlement.