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FTC sues Intuit TurboTax’s ‘free’ filing campaign

(NEW YORK) — As Americans continue to file their taxes ahead of Tax Day, the Federal Trade Commission has slapped a lawsuit against a company behind a popular tax filing software.

The FTC announced on Tuesday it is suing Intuit, the makers of TurboTax, over what it calls “bogus advertisements” that mislead taxpayers into believing they can file their taxes for free with the software.

The commission says that in reality, most customers can’t use TurboTax’s free products “because it is not available to millions of taxpayers, such as those who get a 1099 form for work in the gig economy, or those who earn farm income.”

The FTC points out that in 2020 alone, approximately two-thirds of tax filers weren’t eligible to use the company’s free products.

With the deadline for filing taxes just around the corner — Tax Day is April 18 — the FTC has also filed a complaint in federal district court asking that Intuit cease its “deceptive advertising” immediately.

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