Bad News for Tax Filers Using TurboTax

An investigation into fraudulent tax filings in Minnesota has spread nationwide. Intuit said its TurboTax software can still be used to electronically file federal tax refunds. (TurboTax photo)

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Just as tax season is ramping up, Intuit cited “an increase in suspicious filings” Friday and said it has disabled the ability of taxpayers to electronically file their state income tax returns using the company’s TurboTax software.

The problem with the breach isn’t with TurboTax systems, but with criminals who have become more aggressive in finding personal information elsewhere and fraudulently claiming other people’s state income tax returns, USA Today reports.

Intuit said it is working with treasury officials in all 50 states to resolve e-filing security issues. Customers who have already used the TurboTax software don’t have to do anything, and their returns will be processed when the problem is resolved, the company said.

Intuit said federal returns aren’t affected and can still be filed electronically.

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Intuit turned off state income tax refund e-filing capability after the Minnesota Department of Revenue began rejecting electronic TurboTax filings. The Minneapolis Star Tribune reported that two taxpayers learned returns had already been filed in their names when they logged into the TurboTax to file the legitimate returns.

Minnesota officials are reviewing thousands of returns filed before the security breach was discovered.

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