Consumers to Receive Checks in the Mail from Multistate Settlement Without Needing to File a Claim

(Anchorage, AK) – Alaska Attorney General Treg Taylor Thursday announced that Alaska consumers who were tricked by TurboTax’s owner Intuit into paying for free tax services will begin receiving checks from a $141 million multistate settlement announced in May 2022. Approximately 4.4 million consumers nationwide will receive checks in the mail.

Last year, Attorney General Taylor entered the multi-state settlement with TurboTax to resolve allegations that TurboTax deceived Alaskans into paying for services that should have been free for them as part of the IRS Free File Program. Pursuant to the settlement, a settlement administrator, Rust consulting, will be sending restitution checks to 15,568 Alaskans totaling approximately $477,000. The checks will be mailed to Alaskans who used certain TurboTax products in 2016, 2017, or 2018. The exact amount of each check will depend on the number of years for which each person qualifies.

“Confronting the deception and helping affected Alaskans receive restitution checks was critically important. Tax season is already stressful enough,” said Attorney General Taylor. “Having trustworthy tools to work with will be one less thing our residents have to worry about.”

All 50 states and the District of Columbia have signed onto the agreement.

Consumers who are eligible for a payment will be notified by email by the settlement fund administrator, Rust Consulting. These consumers will receive a check in the mail automatically, without filing a claim. Checks are expected to be mailed out starting next week.

The amount each consumer receives will be based on the number of tax years for which they qualify. Most consumers are expected to receive between $29 and $30. For more information about who is covered by the settlement, and information about the settlement fund, please visit www.AGTurboTaxSettlement.com.

Intuit has also agreed to reform its business practices, including:

• Refraining from making misrepresentations in connection with promoting or offering any online tax preparation products
• Enhancing disclosures in its advertising and marketing of free products
• Designing its products to better inform users whether they will be eligible to file their taxes for free; and
• Refraining from requiring consumers to start their tax filing over if they exit one of Intuit’s paid products to use a free product instead.

Intuit withdrew from the IRS Free File program in July 2021.

• ITMO: Intuit, Inc. Petition to Enter Assurance of Voluntary Compliance – PDF(1MB)

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  Alaska, deception, intuit, reimbursments, settlement, turbotax