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Arkansas taxpayers who were part of Turbo Tax lawsuit to receive payments soon

by Daniel McFadin | May 10, 2023 at 4:46 p.m.
This is a display of TurboTax on display in a Costco Warehouse in Pittsburgh on Thursday, Jan. 26, 2023. In a settlement agreement last year, TurboTaxs owner Intuit Inc. was ordered to pay $141 million to low-income consumers who were deceived into paying TurboTax to file their federal returns — despite being eligible for free, federally-supported tax services. (AP Photo/Gene J. Puskar)

More than 37,000 Arkansas taxpayers will soon receive a payment as part of settlement with a popular tax prep company, Attorney General Tim Griffin’s office announced Wednesday.

As part of a $1,135,660 portion of a settlement with Intuit/Turbo Tax, 37,343 Arkansans will be reimbursed via check after being misled by the company into paying for “free” tax services.

Arkansas’ portion of the settlement, first announced in May 2022, is part of $141 million that will be spread out among 4.4 million Americans in a multi-state agreement with all 50 states and the District of Columbia.

According to the announcement, during the tax filing periods for 2016 to 2018, Intuit offered “free” TurboTax services that turned out not to be free for most customers, who needed to upgrade to a paid version of the software to complete their filing under certain conditions.

Eligible Arkansans who were TurboTax customers during this three-year period will receive their refunds automatically.

The amount a person receives is determined by whether the customer used the TurboTax product for one, two or three years. The dates established for the checks being sent to eligible consumers were April 24 through May 10.

“It is gratifying to see Arkansans be made whole through this settlement after being misled into paying for a free service,” Griffin said in a statement. “I encourage anyone who has questions about this settlement payment to contact my office,” Griffin said.

For any concerns about the legitimacy of checks, the attorney general’s office provided these tips:

m The upper left-hand corner of the letter, which appears through a window in the envelope, shows that the letter is from Attorney General Tim Griffin.
m The next line in the letter states that it is from the Intuit Multi-state Settlement Administrator.
m The letter itself bears the Attorney General’s seal.

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