"Far from steering taxpayers away from free tax preparation offerings, our free advertising campaigns have led to more Americans filing their taxes for free than ever before and have been central to raising awareness of free tax prep," said Kerry McLean, executive vice president and general counsel of Intuit. Intuit, based in Mountain View, California, said in a statement that it would challenge the lawsuit. The FTC voted 3-1 in favor of filing the suit. This year’s tax filing deadline is April 18. The FTC has asked a federal judge to order Intuit to stop what it said were Intuit’s deceptive ads during the rush of tax season. The agency said Intuit has for years focused on the word "free" in its ads, running them during major events like the Super Bowl. "We are asking a court to immediately halt this bait-and-switch, and to protect taxpayers at the peak of filing season." "TurboTax is bombarding consumers with ads for ‘free’ tax filing services, and then hitting them with charges when it’s time to file," said Samuel Levine, Director of the Bureau of Consumer Protection, in a statement. They are ineligible, the agency said, if they are gig workers or earn farm income, for example.
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Meanwhile, the FTC said in March that millions of consumers could not actually use the free tax-prep software option - two-thirds of tax filers in 2020. Warren and other policymakers and will respond," a company spokesperson said.
We are clear and fair with our customers and open and transparent about our advertising practices, and our participation in the Free File program was done in compliance and with the oversight of the IRS. Over the past eight years alone, Intuit’s free tax preparation offering has helped nearly 100 million Americans file their taxes completely free of charge. "Intuit strongly believes that Americans should be at the center of their financial life and is proud to have helped more taxpayers file their taxes for free than all our competitors combined.
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Intuit told FOX TV Stations in an emailed statement it is working to respond to the lawmakers’ letter. "After lobbying for years to keep the Free File program in place and even attempting to codify it into law to prevent the IRS from creating a truly free alternative, Intuit left the Free File program in 2021, ‘throw the future of the program into doubt.‘ The IRS still has not set up a government-run alternative, although in 2021 it renegotiated its memorandum of understanding (MOU) with the Free File Alliance to remove the provision prohibiting the IRS from doing so," the letter continued. "Free File was supposed to cover 70% of American taxpayers, but as of 2018, only approximately 3% of taxpayers participated each year," the letter read.
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