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LEGAL NEWSLINE

Thursday, March 28, 2024

TurboTax allegedly 'diverted' taxpayers from free online filing to paid products

Federal Court
Tax

BROOKLYN, N.Y. (Legal Newsline) – The developer of TurboTax is facing a lawsuit over allegations it intentionally defrauded lower-income taxpayers into paying for a tax preparation service that it was obligated to offer for free per the Free Online Electronic Tax Filing Agreement with the Internal Revenue Service. 

New York resident Christian Williams, individually and on behalf of all others similarly situated, filed a complaint Jan. 20 in the U.S. District Court for the Eastern District of New York against Intuit Inc. alleging fraudulent inducement, unjust enrichment, violation of New York General Business law and breach of contract and false advertising.

Williams alleges that Intuit "diverted" taxpayers who qualified for free tax preparation under the IRS's Free File Program away from public access to the free program and into TurboTax's paid products. He alleges he was charged $223.94 after spending hours of entering information and that Intuit failed to disclose he was entitled to free tax preparation and that the edition of TurboTax he used was the "paid version."

Williams seeks monetary and injunctive relief, a trial by jury and all other proper relief. He is represented by Scott Bursor, Yitzchak Kopel and Andrew Obergfell of Bursor & Fisher PA in New York. 

U.S. District Court for the Eastern District of New York case number 1:20-CV-00320-DLI-RER 

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