From Jill Shepherd, ProPublica <[email protected]>
Subject Investigating TurboTax for nine years
Date March 31, 2022 11:02 AM
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Hi Reader,

As a reader of ProPublica, I know that you come to us for well-researched investigative journalism that you can’t get anywhere else. We invest the time and resources needed to stick with our stories for as long as it takes to follow every thread of injustice and see that wrongs get righted. A recent update to one of our longest-running investigations is a great example of just what I mean.

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, including new policies that would allow citizens to file their taxes free directly with the IRS.

Just this week, the FTC sued Intuit <[link removed]> to stop the company from running a series of ads that heavily focus on the word “free,” which the agency called deceptive. And Intuit is still dealing with customers who claim they were defrauded into paying for a service that should have been free. Intuit’s terms and conditions force customers to file for arbitration rather than turn to a civil court. This has led to a groundbreaking legal battle involving mass arbitration <[link removed]> in which a law firm is paying the fees for tens of thousands of Intuit customers to file arbitration claims. You can be sure that our reporters are watching these events unfold and will report back to us.

This entire investigation <[link removed]> 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. <[link removed]> 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 <[link removed]>

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P.S. ProPublica is hosting a virtual event that will unpack Biden’s billionaire tax proposal, discuss how the federal tax system is broken (and who broke it) and explain why the federal tax code is key to reducing wealth inequality. Hear from ProPublica reporters, and ask them your questions. RSVP for this free event here. <[link removed]>

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