LAWSUITS AGAINST INTUIT (THE MAKER OF TURBOTAX) AND H&R BLOCK
On May 6, 2019, our Office filed lawsuits against Intuit (the maker of TurboTax) and H&R Block based on allegations that they engaged in unfair and deceptive business practices that misled certain taxpayers into unnecessarily purchasing tax preparation software, when they were in fact eligible to file their taxes for free under the IRS's "Free File program" based on their income level.
The Free File program has been in place since 2003. Under that program, companies like Intuit and H&R Block have agreed to provide a free version of their online tax preparation and filing software to taxpayers below a certain income level. Although each participating company has slightly different eligibility requirements, in Tax Year 2018, anyone with an Adjusted Gross Income (AGI) of $66,000 or less was eligible to file their taxes for free through at least one commercial provider under the Free File program.
TurboTax intentionally took
advantage of taxpayers they pledged to help!"
- Mike Feuer,
LA City Attorney
Our lawsuits seek injunctions to stop Intuit and H&R Block from engaging in the alleged deceptive business practices, as well as refunds for anyone in California who was a victim of the alleged practices and who, despite being eligible for the Free File program, unnecessarily paid money to these companies for tax preparation and filing services at any time since May 2015.
If you believe that this describes you, and you are interested in sharing your experience with the City Attorney's Office, please fill out a consumer complaint form.
If you would like to speak with someone from the City Attorney's Office about our ongoing lawsuits, please call our dedicated consumer hotline at 213-473-7741.
Am I covered by this lawsuit? / How do I participate in this lawsuit?
Our lawsuit is brought on behalf of all people in the State of California and seeks refunds for all Californians who paid money to TurboTax or H&R Block at any time during the past four years, who were in fact eligible to file for free under the IRS’s Free File program based on their income level.
If you live outside California and have not lived within California during the past four years, you are not covered by our lawsuit. However, if you believe you have been wronged by TurboTax or H&R Block’s business practices, you may want to consider contacting your own state’s consumer protection agencies.
How do I know if I should have been able to file my taxes for free?
If your adjusted gross income this most recent tax year (2018 tax year) was less than $66,000, you were eligible to file for free under the IRS’s Free File program. The income cutoff levels may have varied slightly in previous years.
I've been paying TurboTax or H&R Block for years. Can I get all my money back? Why does the lawsuit only cover the past four years?
The lawsuit only seeks refunds for people in California who unnecessarily paid TurboTax or H&R Block during the past four years.
The refund portion of the lawsuit only covers the past four years because the California law we have sued under has a four-year statute of limitations. However, we are also seeking an injunction that would permanently bar these companies from deceiving people in these ways in the future.
How do I get my refund? / When will I get my refund?
The lawsuit was just filed very recently, and litigation is a very long process with a lot of uncertainty. We will prosecute this lawsuit vigorously, but we cannot guarantee what the outcome of our lawsuit will be. If and when we reach a favorable resolution that involves payment of refunds to customers, and if you are eligible for a refund, then you will be notified.
If you wish to take action on your own, our lawsuit does not bar you from doing so.
Please note that we are unable to provide individualized legal advice.
Again - our consumer hotline for these cases is 213-473-7741. You can also file a consumer complaint.
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