19 state tax collection agencies have seen higher-than-usual numbers of fake returns; some call out TurboTax Intuit today said it has suspended electronic filing of all state returns from its TurboTax tax preparation software after 19 states’ tax authorities reported unusual volumes of fraudulent returns. “Intuit and some states have seen an increase in suspicious filings and attempts by criminals to use stolen identity information to file fraudulent state tax returns and claim tax refunds,” Intuit said in a statement today. “Intuit took the precautionary step Thursday, Feb. 5, of temporarily pausing its transmission of state e-filing tax returns,” the Mountain View, Calif. company added. Already-filed returns will be held until the states give their okay; new returns will not be sent to the states until the bans are lifted. Intuit said that it believed the fraud did not stem from a security breach, and that the information used by criminals was obtained elsewhere. On Thursday, a number of states, including Alabama, Georgia, Minnesota, Utah and Wisconsin (download PDF) issued news releases about increased rates of fraudulent returns. Only Minnesota and Utah named Intuit and TurboTax. “We have stopped accepting tax returns submitted using TurboTax,” Minnesota’s revenue department said yesterday. Utah (download PDF) said it had identified 28 fraudulent returns, but had marked an additional 8,000 as suspect. “The Tax Commission was also notified by some taxpayers as they tried to file their returns through Intuit/TurboTax, that they received a message that their return had already been filed.” Utah’s State Tax Commission also said that it knew of at least 18 other states that have experienced the same problems. Some states simply described the origination of the fraud as “third-party commercial tax preparation software,” without naming TurboTax. Alabama ( download PDF), for example, which has flagged 16,000 returns as possibly fake, said, “The fraudulent filings originate from data compromised through a third-party commercial tax preparation software process.” Each state contended that its computer networks had not been breached, but pointed a finger at tax preparation software. Intuit reacted by establishing a hotline (800-944-8596) staffed with what it said were specially-trained identity protection agents, and said it would provide identity protection services and free credit monitoring to all affected customers. Intuit also said it will give those customers access to “all versions of its software” or offer tax preparers who will prepare returns free of charge. “We understand the pain and frustration identity thieves cause taxpayers,” said Brad Smith, Intuit’s CEO, in today’s statement. “Our number-one priority is making sure peoples’ returns are filed timely, accurately, and safely.” Intuit has had a rough year. Last month, Smith apologized for not telling TurboTax customers of changes that required some to pay extra to file returns reporting self-employment, investment and rental income. The company has offered partial refunds to those who had already filed their federal returns and free upgrades to those who had not. Ironically, last week Intuit sponsored a symposium in Washington, D.C. where experts and elected officials, including two U.S. senators, discussed the challenges of tax fraud. According to the Wall Street Journal, tax officials from dozens of states participated in conference calls yesterday and today to discuss the situation. Those calls were organized by the Federation of Tax Administrators (FTA), a group whose members represent the tax collection agencies in all 50 states, the District of Columbia, several large cities and the U.S. Internal Revenue Service. The FTA did not immediately respond to email and phone inquires today. Related content news analysis Google can’t seem to quit cookies, delays killing them again Google cited regulatory challenges in its oft-delayed plans to phase out third-party cookies from its Chromium products. It now plans to eliminate cookies in 2025 By Lucas Mearian Apr 25, 2024 5 mins Chrome Browser Security Chrome OS news Apple reportedly cuts Vision Pro production due to low demand Apple analyst Ming-Chi Kuo claims Apple is putting the brakes on production of the spatial computing headset due to low demand; the Vision Pro launched in the US earlier this year. By Matthew Finnegan Apr 25, 2024 4 mins Augmented Reality Apple Virtual Reality feature Windows 11: A guide to the updates Here’s what you need to know about the latest updates to Windows 11 as they’re released from Microsoft. Now updated for KB506980 Preview, released on April 23, 2024. By Preston Gralla Apr 25, 2024 59 mins Small and Medium Business Windows 11 Windows feature Windows 10: A guide to the updates Here's what you need to know about each update to the current version of Windows 10 as it's released from Microsoft. Now updated for KB5036979 Preview, released on April 23, 2024. By Preston Gralla Apr 25, 2024 172 mins Small and Medium Business Windows 10 Microsoft Podcasts Videos Resources Events SUBSCRIBE TO OUR NEWSLETTER From our editors straight to your inbox Get started by entering your email address below. Please enter a valid email address Subscribe