TurboTax Halts E-filing of State Tax Returns Because of Potential Fraud
mpicpp writes with this news from Marketwatch: Intuit, the parent company of TurboTax, has stopped e-filing all state tax returns due to increased suspicion of fraud. The company says it is investigating criminal attempts to use stolen data to file fraudulent returns and claim refunds, after hearing concerns from a handful of states, Intuit spokeswoman Diane Carlini told MarketWatch. After a preliminary examination with security experts, Intuit believes its systems weren't breached, but crooks may have used TurboTax software to file fraudulent returns after stealing identities, she said. Intuit said in a release that "the information used to file fraudulent returns was obtained from other sources outside the tax preparation process." The company called pausing e-filings to states a "precautionary step." Utah, the first state to reach out to Intuit, issued a notice Thursday saying the state tax commission has discovered 28 fraud attempts that "originate from data compromised through a third-party commercial tax preparation software process," as well as 8,000 returns flagged as potentially fraudulent.
I liked them a good 10 years ago, simple, easy. then again i was making minimum wage. This year im thinking about trying taxslayer. I like the reviews ive heard from friends who made the switch years ago. anyone else have any good simple do it yourself methods to share?
have you seen my sig? there are many others like it but none that are the same
If you are going to file under someone else's identity, you have to file first!
227-3517
So why don't they stop filing federal as well?
There needs to be better protection in place to prevent this such as cross verifying the bank account to the actual person doing the filing. It's pretty shitty when 28 false claims can shut down the entire system and ruin it for everyone. Thank you for ruining it for everyone.
You know we have to stop using SSN's for everything. It's time to have a different system. The Anthem hacking is now another example of how vulnerable we are and how we let these companies skate when caught. It's time that PII needs to be held in strictest confidence and with financial penalties awarded to the victims of these stupid attacks. Right now if the FTC slaps them on the wrists and fines them it all goes to the Feds. Fuck that! If I'm a victim of your mishandling of my PII you owe me bitches! Pay Up!
Harrison's Postulate - "For every action there is an equal and opposite criticism"
The government will scrutinize my returns for the last five years and screw me if I make one tiny mistake. Then proceed to not even bother to check that they are sending the return to the right person period? Only after dozens of people file criminal complaints to they get off their butt and check?
Do we need to implement a password system that doesn't include a pet's name for our SSN's verification?
Happiness in intelligent people is the rarest thing I know.
Ernest Hemingway
There are 2,095 negative 1-star reviews on Amazon of Intuit's TurboTax Deluxe tax preparation software. Why? Because, without telling customers, Intuit removed important functions from TurboTax Deluxe.
..."
Most helpful review: "The Deluxe version does not allow you to file Schedule D or E.
Most helpful critical review: "I hate being gouged, and I hate weasel word explanations even more... I am angry about the deliberate disabling of critical features in TurboTax Deluxe. No Schedules C, D, or E."
The solution? In my opinion, the CEO of Intuit should be fired. Intuit should find a new CEO who will cure Intuit of its long-term abusiveness.
I am actually a victim of this. I got my W2s on the 22nd and went to file them on TurboTax, just like I have for about the last 10 years. To my surprise my claim had been approved already by the IRS. I contacted TurboTax thinking I was going to be able to resolve it with a quick phone call for them to reset my account so I could really file my taxes. They werent able to do anything and I had to contact the IRS directly along with a few other branches and my local police department. I now have to paper file along with a Identity Theft form. My refund will now take at least 180 days to process. It could really be worse than it is. I didnt lose anything, the payment to the thieves was stopped before it was paid, just a hassle at this point. And those responsible had my refund at over $1600 short! :-P
Utah has its own simple website for e-filing state taxes. It costs nothing.
There's no reason for a Utah filer to go through TurboTax or any other company.
Intuit is notorious for lobbying politicians to make tax filing complicated for anyone not using TurboTax.
I've been using H&R Block's TaxCut software for years, and in the last couple of years or so, I noticed a new option to retrieve your W-2 information for you. Since most companies use a payroll service, the software can actually find and retrieve your W-2 information and fill it in for you. I didn't even have to know who my employer's payroll service is, which is stupid for them not to require - it's on every check stub. I don't remember if it did any authentication offhand (it was a year ago!). If, through ID theft, someone has your name, SSN, etc., they could easily fill this information in on a bogus return they are filing. Then, as mentioned in another post, no attempt is made to verify that the bank account the refund is being deposited in actually belongs to the taxpayer. On second thought, I guess the ID thief could just open an account in your name to receive the refund in.
When you're dead, you don't know you're dead. It only affects the people around you. Same thing when you're stupid.
As of about two hours ago, Turbo-Tax is again processing State Tax Returns....
"I do not agree with what you say, but I will defend to the death your right to say it"
Intuit is NOT making things completely right! Intuit is apparently just reducing the amount of abuse. See this explanation by an Intuit VP on Amazon:
.0002 bitcoins, which works out to about 4 cents apiece."
"... returning customers who have already upgraded to Premier or Home & Business, we are continuing to offer $25 cash back through April 20."
Apparently only customers who know about the rebate will get money back; that may be a very small percentage. Many customers paid $30 extra, so Intuit will still make $5 extra for tricking customers. Some customers have automatic extensions of time to file, so they won't get the "$25 cash back", because they will file after April 20.
See this Amazon review: **UPDATE -- IT'S EVEN WORSE**. Quote: " Even in the high-priced Premier version, Schedule C is crippled -- limited to $100 of deductions in a couple of expense categories. I.e. only good for a tiny hobby business, and maybe not even that. So now having forced me to Premier, even that high priced product is useless to me."
See this story: Citing Tax Fraud Spike, TurboTax Suspends State E-Filings. Quote: "Cyber thieves have long sought stolen credentials for hijacked tax preparation accounts at TurboTax, H&R Block and related services."
Another quote:
"Stolen TurboTax or H&R Block credentials are cheaper and more plentiful that most people probably would imagine. According to the below-pictured well-known seller on the Dark Web forum Evolution Market, hacked accounts currently can be had for
Another:
"Unfortunately for Intuit and its users, calls for the company to support two-factor authentication have fallen on deaf ears so far, at least according to twofactorauth.org, a site that tracks which popular cloud-based services support the added security measure."
Intuit has a LONG history of abuse, of being anti-customer to make more money. Dishonest people don't later become honest, generally. This is an example of that. Dishonest people, when forced to correct their dishonesty, look for other ways to be dishonest.
If Intuit has a capable, strong board of directors, which I doubt, the board should consider getting a new CEO, and firing all the other dishonest people in Intuit top management.
This comment gives only a very short summary of what I consider to be Intuit's anti-customer behavior.
It's statistically probably less than those which get lost/mishandled in the mail, so far.
Pass the Fair Tax at the Federal and state levels, and never pay income taxes again. It's drop dead simple and it even taxes the criminals. No favors, no loopholes, no cheating, and no tax returns!
As far as I can tell, only the government is against it. It removes too much of their power.
Quote from that article, How the Maker of TurboTax Fought Free, Simple Tax Filing:
"Imagine filing your income taxes in five minutes -- and for free. You'd open up a pre-filled return, see what the government thinks you owe, make any needed changes and be done. The miserable annual IRS shuffle, gone."
Intuit has been paying government officials to try to prevent improvements that would benefit everyone, the article says.
Cheaper than TT, very easy to use, and it works well. Ya I could do it myself but in addition to being a fair bit of paperwork and math (I think about 15-20 pages between federal and state in my case) I don't want to have to look up any rule changes or breaks that might apply to me and the tax software has all that programmed in. I'm way too lazy to do them by hand, and they aren't complex enough to be worth paying an accountant to do for me.
Only downside is they want more money to e-file a state return. No problem, I just print it and mail it. E-file is convenient but no big deal.
And please carry on using our software for defrauding the Federal government, as they can just print more money as necessary.
Sleep your way to a whiter smile...date a dentist!
Except they get the money from you every month in your pay directly so it is probably not 100% comparable to the US system. You can make a formular to get some back once per year. I easily got a few thousands back for example a few years ago.
C. Sagan : A demon haunted world:
http://www.amazon.com/gp/product/0345409469/
visit randi.org
You are doing it wrong...
"Utah, the first state to reach out to Intuit, issued a notice Thursday saying the state tax commission has discovered 28 fraud attempts that "originate from data compromised through a third-party commercial tax preparation software process," as well as 8,000 returns flagged as potentially fraudulent."
Given this reality, doesn't that ethically justify using only pirated copies of TurboTax to do one's taxes?
For YEARS i got other peoples tax returns emailed to me I spent months trying to get them to stop sending me these details from fraudulently created accounts.
It took several BBB complaints and finally I had to bring the CANADIAN anti spam legislation into the picture and filed several complaints. Apparently intuit would rather send your tax information to people in foreign nations than address the problem head on and admit something may be wrong
http://sti2.blogspot.com/
I always felt frustrated paying over 50 bucks for tax software.
I went to Taxact 8 years ago because of price (22 bucks or so for deluxe state and federal and federal efile, $19 if you buy early). I had tried turbotax and H&R block. They are all roughly equivalent.
The only negative is that they don't seem to import my stocks directly from one of my brokerages.
But it's well worth the avoided hassle of the big names, though.
I'm not avid over tax software, but I like these guys because I think they charge a fair price and don't try to screw you.
(I have no affiliations)