TurboTax maker, H&R Block sued for allegedly charging taxpayers for free service.
Tax preparation giants H&R Block and TurboTax-maker Intuit have been hit with federal lawsuits by the Los Angeles City Attorney, who alleges that the companies have deliberately misled low-income taxpayers into paying for tax-filing services that are supposed to be free.
"While more than 100 million taxpayers [nationwide] were eligible to file for free through the Free File program in fiscal year 2018, fewer than 2.5 million — less than 2.5 percent of eligible taxpayers — actually did so," according to the lawsuit. But Feuer alleged the companies not only bamboozled taxpayers into paying for the free service, but they also made it"essentially impossible for the average person, who is seeking through the web, to identify how to get those services."
In one example noted in the lawsuits, a low-income California resident was allegedly"deceived" into unnecessarily spending $169 on a TurboTax product when the person, who earned $14,500 per year, could have gotten it for free.
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