A free tax service shouldn’t cost taxpayers

There’s an old adage that says repeating something over and over again doesn’t make it true. Intuit, which markets the TurboTax software, found that out the hard way when the Tennessee Attorney General and all other state Attorneys General landed on the company for deceiving consumers into paying for tax services that should have been free. The company has settled with the AGs but still faces a similar action from the FTC.

Intuit offers two free versions of TurboTax, one of which is in partnership with the IRS to allow qualifying taxpayers to file their taxes for free. The IRS agreed not to compete with Intuit and other tax-preparation companies by providing its own electronic tax preparation and filing services if they participate in its program. The IRS Free File product would be free for about 70 percent of taxpayers.