From Super Bowl to Super Chumps: TurboTax halts e-filing of tax returns in all states

Greg P. | 1:16 PM on February 06, 2015

Remember that TurboTax ad during the Super Bowl that re-imagined the Boston Tea Party? You know, the one that said the colonists would give up the dream of liberty if only the Brits would allow them to file their taxes with the King George Revenue Service for free:

Reviewing TurboTax's 'Boston Tea Party' ad: 'DEPORT TURBOTAX FOR TREASON' http://t.co/YbJN9rO5sG

— Twitchy Team (@TwitchyTeam) February 1, 2015

Well, revisionist history has consequences.

Not only was TurboTax’s offer of free e-filing attractive to paying customers, it seems it’s also the software-of-choice for fraudsters filing fictitious returns:

#BREAKING TurboTax halts state filings amid fraud outbreak http://t.co/7Nv01CkMuM

— USA TODAY (@USATODAY) February 6, 2015

Whoops.

From USA Today:

The tax-preparation software company has found an increase in criminal activity where stolen personal data is used to file fake state returns with state authorities. This illegal act allows fraudsters to claim tax refunds from state governments.

An internal TurboTax investigation has found the breaches are not due to a problem with its own systems, but criminals digging up the personal information elsewhere. The company said the investigation is ongoing. Intuit says it’s working with state tax officials to get the e-filing security back to where it needs to be to turn it back on. TurboTax customers who already e-filed their state returns don’t have to do anything. The returns will be transmitted again when the problem is resolved, TurboTax says.

The e-filing halt only affect state returns. Federal tax returns can still be filed electronically.