TurboTax Temporarily Halts E-Filing In All States Amid Fraud Concerns

[Omaha Steve]

Source: Forbes

Kelly Phillips Erb

Up to 18 states are reporting significant upticks in fraudulent activity and there may be a common thread: tax preparation software.

Individual State Departments of Revenue are loathe to name names but have been quick to point the finger away from their own systems.

The State of Alabama Department of Revenue released a statement yesterday about fraud concerns, saying only, “The fraudulent filings originate from data compromised through a third-party commercial tax preparation software process and were detected through ADOR’s fraud detection systems.” They were quick to assure taxpayers, however, that “[o]ur systems have not been compromised.” Just two weeks into tax season, however, the number of suspicious returns in the state has already hit 16,000, all of which were “filed suspected of fraud from the third-party commercial tax preparation software.”

Similarly, the State of Utah has issued a warning (downloads as a pdf) about fraudulent returns, saying, “The fraudulent filings originate from data compromised through a third-party commercial tax preparation software process and were detected through the Tax Commission’s fraud detection systems.” Utah also attempted to quiet taxpayers fears, saying, “All information in the State’s tax computer system remains secure and has not been compromised.” Utah did not call any particular provider out as solely responsible but did offer that the Tax Commission “was also notified by some taxpayers as they tried to file their returns through Intuit INTU -3.26%/TurboTax, that they received a message that their return had already been filed.” Utah has pegged the number of potentially affected returns at 8,000.

FULL story at link.


Read more: http://www.forbes.com/sites/kellyphillipserb/2015/02/06/turbotax-temporarily-halts-e-filing-in-all-states-amid-fraud-concerns/

[mnhtnbb]

1. To clarify, it appears to be the STATE e-filings that are the problem

Farther down in the article:

Intuit stressed that this action does not affect the filing of federal income tax returns. It also clearly does not affect taxpayers who are not e-filing state tax returns.

So far, there has been no indication that federal returns have been affected.




http://www.forbes.com/sites/kellyphillipserb/2015/02/06/turbotax-temporarily-halts-e-filing-in-all-states-amid-fraud-concerns/

[uppityperson]

3. thank you for letting us know that as it is important

[turbinetree]

2. Let me say

California has in place that they file for you, they know how much is already being taken out so that you don't have to file under certain income levels and you don't have deductions, (if you have deductions you have to file yourself) they just report the information, this the model that should be used in every state make it so much easer and its already done for you, simple and fast.
They have in most cases gotten away from third party software, wish my state would do the same thing

[nitpicker]

4. Just what the filing-assistance people did NOT need

I volunteer with VITA to help out the lower-income people.

One goal of VITA is to have the taxpayers use TurboTax (with assistance) to file their own tax forms, instead of having a volunteer use TaxWise to file taxes for the clients.

This may cut our ability to help per day by 30-50% until this is resolved,

[question everything]

5. OK, so I will file a paper return

I have used TurboTax for 15 years now and it has really been helpful.

Several years ago, I received a letter from the IRS that my social security number came out as a tax preparer so please register and pay license, or whatever. I immediately replied that the only tax I prepared was our joint personal one. Never heard back so when I called I was told that, if I said I was not a preparer than I was not and that was the end.

But I was thinking that the only place where my social security number and tax preparation could be tied was in TurboTax..

That's OK. I just started the preparation on TurboTax and if they will generate the state, I will print and mail. Or hand deliver.

[PSPS]

6. Intuit is killing itself

First, they sneaked in a "new design" of TurboTax this year that forces users of the program to start paying five times the price if they file anything other than a 1040A or 1040EZ. Now, this. I suspect this will be a banner year for its competitors. I've consistently used TurboTax for decades but won't be using them anymore.