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TurboTax Faces Federal Consumer Fraud Class Action over Fees

San Francisco, CA: A federal consumer fraud class action lawsuit has been filed in California against Inuit – the makers of TurboTax - alleging the online version charges illegal and exorbitant fees to customers who choose to defer payment of the fees to be taken from their tax refunds.

According the lawsuit, filed in California, the TurboTax website provides customers with several options including the "Free Edition."However, the lawsuit claims states "the poorly named TurboTax Online 'Free Edition' is not free, for it requires additional fees (typically $19.95) to file a state return. According to Defendant' website, 'TurboTax Online is free until you decide to file, e-file or print your return.' At that point, consumers must 'purchase [the] TurboTax Online federal and state products."

The lawsuit also states that while Intuit aggressively markets its Free-Edition, which is not free, it hides from plain view its Freedom Edition, which does enable customers to e-file their taxes free of charge, at both the federal and state levels.

According to the TurboTax lawsuit, Intuit violates the Truth in Lending Act and California business and usury laws by charging "usurious,""quadruple-digit interest rates"as fees for deferring payment to be taken out of users' tax refunds. Further, the complaint alleges Intuit violates federal and California law by not accurately disclosing the interest rates and finance charges for deferring payment of tax preparation fees.

Lead Plaintiffs Tasha and Fredierick Smith also claim that they used TurboTax' online software in 2009, 2010 and 2011, and that each time they chose to defer paying the $89.90 fee for use, so that the fee would be deducted from their tax refund. The Smiths allege that Intuit charged them another $29.95 to do this, more than 34 percent of the $89.90 fee. They received their tax refund from the IRS two weeks after filing their return, which effectively meant that they "paid $29.95 for an approximate 14-day loan of $89.90,"according to the lawsuit.

The TurboTax federal class action is brought on behalf of all citizens of the US who used TurboTax Online after January 12, 2008, and who received a Refund Processing Option payment facilitated by Intuit, and who had Intuit' feed taken from the deposit account established for the Refund Processing Option payment.

TurboTax Federal Consumer Fraud Class Action Legal Help

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Published on Feb-7-12


Posted by

I am very upset to learn this I too have previous filed with Turbo tax and again this year 2019 I selected the free version then after having to continue in order file had to do upgrade after upgrade. not mention prior only till you get to the end also charge and additional amount for state. not to mention to take it out of my refund for services. On top of all this I had an oringinal date of 2weeks . I logged in to check it has now been moved back 12 more days I oculd have mailed my return and gotten in 4-6 weeks . I can't even begin to say how I feel right now. and I have learn something I will never ever use them again. I hope I can get comphensated for the hundreds I have been charged ! I wonder how many more times the date is going to be change ?

Posted by

I am offended, as many others are (see help section of Turbo Tax) by the fraudulent advertising of Fee State Filing on my Turbo Tax Deluxe 2017 product. When I went to file, I was asked for a $19.95 fee and a credit card to charge it on. How is this free?
It states that it is a charge from the state to file. NJ has a free electronically capable site that you can use, so who is getting this fee????? Isn't this fraud???

Posted by

My taxes are always paid in full about a week before the due date. This is to insure that payment arrives on time in case of an electric power outage or storm. I use the advanced TurboTax but TurboTax can process only a limited number of securities and admit that their program is incomplete. This causes me to underreport taxes and incur interest and penalties of thousands of dollars. I am required to use TurboTax or H&R Block as the tax code is enormous in length and in a technical language. The IRS would better change to a simpler form. Three countries automatically calculate taxes using the checking information from salary, brokerage account, social security, and pension.
It is an unjust system, a predator and prey form of capitalism

Posted by

2013 Turbo tax software program problem caused a 11,000 IRS bill
Called Turbo tax and was passed around for person to person ending in statement from rep. wait for class action suit

Has any one heard of one regarding this 2013 software problem, I want to submit my claim!!!!

Please advise

Posted by

My TurboTax from last year was also hacked, someone tried to file taxes in my name (2014) but luckily they did it with the wrong status and the IRS caught it and flagged it as fraud. I am still waiting for my refund, but have to now prove who I am, as they say my identity was stolen. Does anyone know if there is a lawsuit against this. The IRS told me that the tax software company sold information to the third party which caused for a lot of peoples information to get into the wrong hands. How scary is this. Can someone tell me what I can do to move forward with my own class action lawsuit against turbotax.

Posted by

My Turbo Tax from last year was hacked and someone filed taxes (2014) and stole my identity. My refund was already deposited in someone else's account.


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