Sen. Elizabeth Warren (D-Mass.) criticized TurboTax on Monday for charging taxpayers with a relatively simple tax return and repeatedly selling them higher taxes during the filing process.
Ahead of Monday night’s tax deadline, Warren pointed to a sample of taxpayers in “simple filing situations” who are eligible for the IRS’ new Direct File tool, a free pilot program available in 12 states. did.
But with TurboTax, sample taxpayers would pay $133 to file their federal and state taxes and “be subject to eight more sales pitches and solicitations for expensive additional services along the way,” Warren said. Stated.
In a letter to Federal Trade Commission (FTC) Chair Lina Khan, the Massachusetts Democratic congressman wrote, “TurboTax’s website moves taxpayers away from free filing options early in the process. “And we continue to do so throughout our federal and state tax filings.”
“Given these continuing concerns, I support the FTC’s efforts and urge it to continue taking action to protect taxpayers from tax preparation companies that charge taxpayers junk fees,” Warren added.
In January, the FTC alleged that Intuit misled customers by claiming that a version of its online tax preparation software was free, when about two-thirds of U.S. taxpayers were not eligible for free services from TurboTax. handed down a judgment.
The agency prohibited Intuit from advertising its services as “free” unless it was free for all consumers or “clearly and conspicuously” disclosed the percentage of consumers covered by the service.
Intuit also agreed in 2022 as part of a multistate settlement to pay $141 million to low-income filers who paid for the otherwise free TurboTax service.
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