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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.
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"
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.
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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.
easy solution, stop filing taxes. The government gets all that information anyway. why not just have the gov send you a bill/refund every year, and IF you are not happy with the bill/refund, then you can file your taxes yourself. the way we do things is so backwards
have you seen my sig? there are many others like it but none that are the same
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
Intuit is notorious for lobbying politicians to make tax filing complicated for anyone not using TurboTax.
Most other first-world countries manage it.
"[Regarding the 'cloud,'] ownership was what made America different than Russia." -- Woz
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.
Strangely it's not actually that issue, as plenty of other countries do their taxes that way.
The problem here (like just about all of our problems) comes from the intersection of business and government. The IRS actually looked in to free tax filing, but Intuit and their fellow companies lobbied hard to get it killed. It turns out Intuit would make a lot less money if the government did our taxes for us, so it's in their best interest to spend lots of money to prevent it from happening.