But an April 2019 ProPublica article reported that Intuit had intentionally used misleading marketing and "dark pattern" Internet tactics to steer taxpayers away from the Free File program and toward paid products. In 2019, Congress passed the Taxpayer First Act, in which the IRS agreed not to create its own system as long as tax-filing corporations provided free services to qualifying taxpayers. The Alliance argued that competing with the IRS would constitute " a continued competitive threat to our business." During this time, the company, along with H&R Block and other industry leaders, aggressively lobbied Congress to prevent the IRS from creating its own free tax filing system. In July 2021, Intuit announced that it was no longer participating in the Free File Alliance, a partnership between the IRS and the tax software industry that offers free filing options for Americans earning $72,000 or less.īefore its exit, Intuit was a member of the Free File Alliance for nearly two decades. In a statement sent to CNET, an Intuit spokesperson said the company is reviewing the letter, adding that Intuit is "clear and fair with our customers and open and transparent about our advertising practices." "Intuit deliberately hid Free File from Google results, repeatedly changed names and landing pages to confuse and deceive consumers, and targeted military service members, people with disabilities, unemployed Americans, and people with student loans with upselling scams," the lawmakers wrote. The legislators allege that Intuit intentionally makes it hard for eligible taxpayers to find and utilize cost-free filing options. Elizabeth Warren and other congressional Democrats alleged that Intuit "scammed billions from taxpayers" and hired former Federal Trade Commission regulators as lobbyists "to shield its shady practices from government action." Lawmakers are accusing TurboTax's parent company, Intuit, of misleading the public about the real nature of its free tax-preparation program.
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