One Of TaxConnections Most Read Blogs In 2020: Why TurboTax Sucks And Intuit Is Evil

John Dundon: Why TurboTax Sucks And Intuit Is Evil

We often receive requests to read a blog written by TaxConnections Member John Dundon. We appreciate the research John did to bring these issues to light and encourage anyone to tell us their stories by leaving a comment below.

Why TurboTax Sucks & Intuit is Evil can be distilled down to the simple fact that corporate america has lost its soul and this particular company is simply following along into the abyss.

There once was a time when board members of large publicly traded corporations actually understood and were deeply concerned about balancing the needs of their main constituencies; customers, employees, shareholders and the communities they were polluting. Those days are LONG gone.

Today’s corporations are concerned about 1 constituency – the shareholder. As such it is a horribly dysfunctional time for workers and customers alike. Presently all we can do is take solace in the belief that lopsided disrespect for people and communities will eventually – one day – bite short term thinking parasites where it hurts most.

In the mean time those of us in the trenches must continue to call out nefarious behavior as it presents itself. With that these are the 3 main reasons why TurboTax SUCKS and Intuit is EVIL.

Reason #1 – Intuit – the company that created TurboTax is a LARGE corporation whose common stock is traded on the Nasdaq Global Select Market under the ticker symbol INTU. They are beholden to their shareholders and could care less about their customers. Keep reading for details.

Reason #2 – In fiscal year end 2019 Intuit report $6.7 BILLION dollars in gross receipts, a preponderance of which came from false and misleading advertising to unsuspecting defenseless people who simply were trying to maintain compliance with our esteemed taxing authorities.

Reason #3 – Their mission as stated is to be ‘laser focused’ on the customer, to ‘live and breath’ innovation and to ‘champion’ those who dare to dream is laughable at best!

In deference to their stated mission, Intuit has instead focused on:

SCREWING the customer, particularly those unable to defend themselves.
Rolling out technology prematurely and harmfully.
Turning otherwise well meaning millennial employees into amoral cretins with poor dispositions.

Harsh Words Indeed – Here is the Beef

Beginning in May 2019, various lawsuits were filed and certain regulatory inquiries were commenced in connection with Intuit’s provision and marketing of free online tax preparation programs.
Intuit believes that the allegations contained within these lawsuits are without merit – because the people at the helm cannot see past their nose to spite their face!
Intuit is also subject to class action lawsuits, as well as demands, claims, government inquiries and threatened litigation, that arise in the “normal course of our business” including assertions that they are infringing patents or other intellectual property rights of others.

Intuit’s failure to obtain necessary license or other rights, or litigation arising out of intellectual property claims WILL adversely affect their business.

What Does This All Mean?

In May 2019 ProPublica found that TurboTax lied to taxpayers about its free filing program.
In June 2019 Gizmodo reported that “a new class action lawsuit against TurboTax maker Intuit claims the tax service breached its agreement with the Internal Revenue Service by intentionally obscuring its free filing service and charging qualifying taxpayers anyway”.

According to the suit, TurboTax violated its agreement with the IRS by separating its free filing page from its primary service as well as by intentionally hiding the service from search engines — and therefore qualifying taxpayers — by altering its code, a discovery unearthed through ongoing investigations into TurboTax’s practices by ProPublica.

Additionally, TurboTax is accused of using language meant to lead taxpayers to believe that its primary service is free only to later charge them.
There is a remedy that will be addressed at the end. Before that to hammer home what users experienced check this out.

Hidden Costs
I have been using TurboTax for over a decade. The product has been cost prohibitive. I purchased the deluxe version at Sam’s Club for $41.89, paid $ 47.28 for WI state tax return, and paid $24.99 for e-filing for a total cost of $114.16. Paying this amount to do my own taxes is ridiculous! I don’t mind paying the cost of the software, but I do take issue with the extra upcharges.

Mark – Waukesha
Paying for Unneeded Services
They have made their website tricky so you end up paying for services you don’t need. Once you click on any upgrade, there is no way you can go back and cancel that action. This is my final year of wasting my time with TurboTax. There are so many resources around you if you just Google.

Pankaj of West Hempstead, NY
Failure to Protect Identity
I called Turbo Tax shortly after I noticed that someone had accessed my account after filing my taxes with Turbo Tax. I was verified after making the initial call to customer service but yet they would not shut my account down (close my account). I was worried that someone was trying to access my account and steal my information. I had already had problems earlier after I tried to file my taxes online and couldn’t.

Gina of Reston, VA
Poor for International Taxpayers
Very difficult to contact and actually talk to TurboTax. Have to wait for hours to actually talk to a representative. They filed 1040 forms for me, when I needed a 1040NR, there was no option to check this or any other options. The software led me on and I got fooled.

Advait of Marlborough, MA
Not cost effective for self employed
When I started my federal return, I went to the “free” TurboTax site. In addition to Social Security, I have a small income from part-time work. They then sent a request that I upgrade to their software that costs $119. I chose to keep working on the free. When I got to the point where I would enter my business expenses to offset that income, I found that there is no longer an option to create a Schedule C or 2106! So what were they charging for!!!! Now I find that I owe $272 for self-employment taxes when I never did before. Their information was to deduct from my state taxes. I never needed a deduction for my state taxes. I don’t know whether to blame TurboTax or the Republican tax bill!

Mary of Doylestown, PA
Not good for state income tax returns
For Oregon early filers, pre-02/01/2019, TurboTax miscalculated their OR state taxes.

The company, and their software, did not understand a new OR state tax and instructed us to enter a erroneous $10,000 Itemized Deduction.

My initial refund (filed 01/18/2019) as miscalculated by TurboTax… That was received in my account (02/21/2019) and applied to medical bills prior to TurboTax notifying customers of their error (3/20/3019)… was $700 MORE than my actual refund should have been.

I had to re-do my OR state taxes by hand, file and amendment before Tax Day and PAY BACK the $700 OVER-REFUND to the State of Oregon

TurboTax was of absolutely no assistance. Each time I tried to contact them and would only help me if I PAID THEM to upgrade my filing edition.

TurboTax lost all my trust and I will never use their services again.

Lanova of Portland, OR –
Hidden Fees
I have used TurboTax for 4 straight years and I’ve never had a problem. I’ve never had to pay so much for TurboTax, at most $54 to file my federal taxes and the state has always been free!! This year they claim filing was free, but what they don’t tell you is that if you have deductibles you will have to switch over to another plan. You might want to put that in clear writing instead of hiding it in your system. I figure since I always file with them I would just pay the extra money and be done with it. I was suppose to get $800 back as my refund, but I choose to pay with my refund. I expected a $100 or so difference. Well, when I reach check out it’s already taken half of my refund because of all the fees TurboTax has. Now I am only get $300.00?! What a joke! I am not using TurboTax next year that is for sure. No one should have to pay that much just to file a simple tax return. You’re getting greedy TurboTax!!

Whitney of San Francisco, CA –
Refund anticipation cards fraudulently cancelled
I wish someone told me about this terrible company TurboTax prepaid card. I lost my card a month ago and I reported my card stolen, a representative put in a dispute claim for charges that was not authorized by me. A week later they answer my claim and I was denied my claim to which I’ve never made any charges on my card. When I asked him why I was denied they did not tell me. I still have not received a letter and it’s been a month and I put in another claim and they did denied that one also. I also sent medical documentation that states that I was in the hospital when the charges were happening, TurboTax prepaid card took my money and refuse to give it back. I believe I was discriminated on. I will be looking for a lawyer!!!! To sue these thieves.

tallwomen of Bronx, NY –
Support SUCKS!
They claim support, and live help, but really put you on hold forever and send you to people who don’t actually help. The software pulls numbers incorrectly and they can’t explain where they came from… Go to a real person or H&R Block.

Ira of Ashburn, VA –
False & Misleading Advertising
I’ve been using TurboTax since 1998. For the last decade or so, I haven’t considered using any competing products. But next year I will, because Intuit has managed to infuriate a (formerly) happy and loyal customer. I tried the online version this year. It said “you don’t have to pay until you file”. But most of the features I liked weren’t there– for example, I couldn’t click on a number and get the source of the data, as I could with the desktop version. But at that point, I had already invested several hours in the process, and I didn’t want to start over.

Ira of Ashburn, VA –
Inflexible Filing Options
New York state requires e-filing of state returns. We allowed our son to prepare his taxes and he opted to mail his federal return. When we tried to e-file his state return as required by the state, TurboTax would not allow the state return to be e-filed unless the Federal return (already in the mail) was e-filed as well.

Pete of Hartwick, NY –
The Remedy to ALL These Failings
The Internal Revenue Service announced today an agreement (PDF) with Free File, Inc. (FFI) designed to bring more clarity for taxpayers choosing to use free online software during the 2020 filing season. The agreement reached will help make the Free File program more taxpayer-friendly while strengthening consumer protections in several key areas.

“This updated agreement is part of a larger effort by the IRS to help taxpayers meet their tax obligations,”

IRS Commissioner Chuck Rettig
“It continues to show the partnership we enjoy with the Free File partners and the commitment we both share in helping taxpayers since the program’s creation 18 years ago. The improved process will make Free File stronger and give taxpayers another reason to consider this valuable software option.”

IRS Commissioner Chuck Rettig
“The IRS and FFI will also continue to work together to identify and explore ways to better help low- to moderate-income taxpayers and to pursue meaningful opportunities to enhance taxpayer awareness and use of the Free File Program beyond the 2020 filing season,”

IRS Commissioner Chuck Rettig
Each year, Free File partners, acting through FFI, offer their software free to eligible taxpayers.
Any taxpayer earning $69,000 or less can find one or more free commercial software products available by visiting IRS.gov/freefile.
Some providers offer both free federal and free state tax preparation.
Active duty military personnel with incomes of $69,000 or less may use a Free File software product of their choice without regard to other criteria.
The program also offers Free File Fillable Forms, a fillable version of IRS’ printed forms best suited for taxpayers experienced in preparing returns by hand and who need limited assistance.
The Fillable Forms program, which is available to anyone regardless of income, will be available again in the 2020 tax season for people completing their tax year 2019 returns.

Highlights of the new agreement reached on the Free File program include several features designed to make the program more taxpayer friendly. Among the features in the new agreement, FFI members:

Will not exclude their Free File Landing page from an organic internet search.
Will ensure a link on their sites is available to return taxpayers to the IRS Free File website at the earliest feasible point in the preparation process if they do not qualify for the Member’s Free File offer.

Will regularly survey taxpayers who successfully e-filed a tax return through the Free File program, reporting their results quarterly to the IRS.
These steps will help further protect taxpayers and make important improvements to the program.

IRS Commissioner Chuck Rettig
The IRS is committed to improving the Free File program and providing a great option for taxpayers to consider when preparing their taxes.

IRS Commissioner Chuck Rettig

Have a question or comment? We would love to hear it.

Written By John Dundon, Enrolled Agent

Read More Tax Blogs At TaxConnections

Enrolled with the United States Treasury Department to practice before the IRS, governed by rules stipulated in United States Treasury Circular 230. As a Federally Authorized Tax Practitioner and a tax appeals specialist my Enrolled Agent License #85353 is issued by the United States Treasury. With this license I work for U.S. taxpayers everywhere to resolve tax matters and de-escalate stress about taxes or tax disputes for individuals and corporations with federal and state issues.

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