In May 2022, our Office, the Los Angeles City Attorney, the California Attorney General, and a coalition of other states reached a $141 million settlement with Intuit, Inc. the maker of tax preparation software TurboTax.
The settlement resolved a lawsuit that we and the Los Angeles City Attorney brought in 2019, alleging that Intuit misled consumers about how to access and use free tax filing products. Intuit was required to offer free tax filing to all customers with income below a certain amount. Instead, Intuit steered them to another TurboTax product that required customers to upgrade and pay hundreds of dollars to prepare and file their income taxes.
The settlement with Intuit included millions of dollars to compensate Californians who overpaid to file their taxes using TurboTax. It also barred Intuit from continuing to mislead low-income taxpayers.
