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Washington State News

AG Ferguson wins $3.75 Million for Washingtonians who Paid to use TurboTax When they Were Eligible to e-file for Free

SEATTLE — Attorney General Bob Ferguson announced today that as a result of his investigation tax preparation software company Intuit will return more than $3.75 million to 121,102 Washington taxpayers.

These Washingtonians paid to electronically file their returns with Intuit’s TurboTax software after the company failed to inform them that they were eligible to e-file for free through the Internal Revenue Service (IRS).

Between 2016 and 2018, the affected Washingtonians filed more than 127,000 tax returns through Intuit’s paid software despite being eligible for free electronic filing through the IRS. The IRS currently offers free electronic filing of all tax returns with incomes up to $73,000. Eligible Washington taxpayers will receive approximately $30 for each year they paid Intuit to file their returns through TurboTax. Some Washington taxpayers are eligible for restitution for multiple years.

In addition to the restitution to Washington taxpayers, the resolution, to be filed in King County Superior Court, requires the company to promptly notify consumers when they are eligible to file for free through the IRS, as well as to clearly disclose the limitations on who is eligible to use its own free tax filing software.

“I will continue holding corporate interests accountable when they deceive Washingtonians into paying millions of dollars for a free service,” Ferguson said. “Intuit’s deceptively earned profits will return to hardworking Washington families to help pay for groceries, car payments and other needs.”

Washingtonians do not need to do anything to receive restitution. A claims administrator will reach out to impacted Washington taxpayers identified in Intuit’s records and arrange payment of the restitution they are owed.

For more information on who is eligible to electronically file their tax return for free through the IRS, go to https://www.irs.gov/filing/free-file-do-your-federal-taxes-for-free.