Hi Reader,
ProPublica’s longest-running investigation is out with yet another story just this week, and it’s a perfect illustration of how we follow every thread of injustice for as long as it takes to see that the wrongs we uncover get righted.
Back in 2013, ProPublica reported that Intuit, the maker of TurboTax, had successfully lobbied to stop the IRS from creating an easy way for millions of taxpayers to file online for free (something many other countries provide). Instead, the IRS struck a deal with Intuit and other for-profit tax preparation companies to offer their products for free to qualifying taxpayers, while the government pledged not to create its own competing system.
In 2019, as Intuit was lobbying Congress to make this agreement permanent, ProPublica exposed how TurboTax was using deceptive design and misleading tactics to steer low-income filers to paid versions of its service when they were eligible to file for free. This shady behavior worked. Only a tiny percentage of eligible taxpayers actually used the free products. Our investigation spurred public outcry, federal and state investigations, lawsuits and more. The IRS announced major reforms to its agreement with the tax prep software industry; more than 4 million people received refunds from Intuit as part of a $141 million settlement; and in May, the IRS announced plans to test a free, publicly funded tool to file taxes online.
Yesterday, ProPublica reported on how this major development has Intuit returning to some of its tried-and-true tactics: deploying lobbyists to stalk the halls of government, while op-eds and stories with Intuit talking points have begun appearing in publications across the county. The op-eds center around a study published this year that found racial disparities in IRS audits. They claim that an IRS tax filing tool would make things worse for Black taxpayers — a conclusion rejected by authors of that research. This pattern of eye-catching headlines is familiar territory for Intuit. ProPublica has previously reported on the company’s strategy of manufacturing “grassroots” support through op-eds. While ProPublica did not find evidence that Intuit has financed the stories this year (and a company spokesperson denied paying to secure the pieces in a statement to ProPublica), the current PR campaign seems to be in line with past behavior.
This entire investigation represents how powerful and wide-reaching journalism can be when published in the public interest. And with the public’s support, we’re able to really dig deep and uncover practices that corporations would much rather remain hidden.
Help us continue this critical work by joining us today with your donation of any amount. Journalism for the people is also powered by the people, and we’re counting on you to stand with us.
Thanks so much,
Jill Shepherd
Proud ProPublican