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Turbo Tax Stops Processing State Returns Amid Fraud Reports

 & Angela Moscaritolo Managing Editor, Consumer Electronics

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Trying to file your state tax return with Intuit's Turbo Tax software? You might run into some trouble.

The tax preparation software company on Friday announced it has temporarily halted e-filing for state returns across the U.S. after it found "an increase in suspicious filings and attempts by criminals to use stolen identity information to file fraudulent state tax returns and claim tax refunds." Intuit is now working with state agencies to address the issue.

"We understand the role we play in this important industry issue and continuously monitor our systems in search of suspicious activity," Brad Smith, Intuit president and CEO, said in a statement. "We've identified specific patterns of behavior where fraud is more likely to occur. We're working with the states to share that information and remedy the situation quickly. We will continue to engage them on an ongoing basis in an effort to stop fraud before it gets started."

The announcement comes after Minnesota today stopped accepting tax returns submitted using Turbo Tax software due to fraudulent activity.

"Some Minnesota taxpayers have recently found that when they log in to TurboTax to file their tax return, they see that a return has already been filed," according to a notice put out by the Minnesota Department of Revenue. "Due to this potentially fraudulent activity, we have stopped accepting tax returns submitted using TurboTax."

Intuit said it has conducted a preliminary examination of these recent fraud activities with the help of security expert Palantir, and believes these crimes did not result from a breach of its systems. Instead, the information used to file fraudulent returns was obtained from other sources outside the tax preparation process.

"Intuit will be working with the [affected] states today to begin turning transmissions back on," the company said. Those who have already filed their state tax returns with Turbo Tax do not need to take any further action at this time.

The move does not affect federal income tax return filing, and is limited to states that require residents to file returns. If you believe you have been the victim of tax fraud, call Intuit at 800-944-8596. All affected customers will receive free identity protection and credit monitoring services, plus access to all versions of Turbo Tax or one of Intuit's tax experts who will prepare your taxes at no expense.

In the meantime, check out our roundup of The Best Tax Software for 2015.

The move comes as Anthem healthcare is dealing with a breach of its systems; see more in the video below.

About Our Expert

Angela Moscaritolo

Angela Moscaritolo

Managing Editor, Consumer Electronics

My Experience

I'm PCMag's managing editor for consumer electronics, overseeing an experienced team of analysts covering smart home, home entertainment, wearables, fitness and health tech, and various other product categories. I have been with PCMag for more than 10 years, and in that time have written more than 6,000 articles and reviews for the site. I previously served as an analyst focused on smart home and wearable devices, and before that I was a reporter covering consumer tech news. I'm also a yoga instructor, and have been actively teaching group and private classes for nearly a decade. 

Prior to joining PCMag, I was a reporter for SC Magazine, focusing on hackers and computer security. I earned a BS in journalism from West Virginia University, and started my career writing for newspapers in New Jersey, Pennsylvania, and West Virginia.

The Technology I Use

My little Florida beach bungalow is brimming with smart home tech. I have a smart speaker or display in every room, allowing me to control other connected devices by voice. The Nest Hub on my bedside table lets me set wake-up alarms, control my smart light bulbs, and set the temperature on my smart thermostat. I use the Amazon Echo Show 8 on my kitchen counter to browse recipes, reorder protein powder, check the weather, and watch the news while I do dishes. 

Because I suffer from allergies, air purifiers are essential. My favorite model is the Dyson Purifier Cool TP07, which doubles as a fan and continuously sends indoor pollution data to its companion mobile app. 

My pitbull Bradley sheds, so a good robot vacuum is a must. I currently use a premium Ecovacs Deebot that can both vacuum and mop, empty its own dustbin, and wash its own mop cloth. 

For fitness, I like to mix up my routine with cycling, indoor rowing, running, and strength training in addition to yoga. I take classes on the Tonal 2 smart strength training machine, I row indoors on an Aviron machine, and track my beach runs with an Apple Watch while listening to music on my Apple AirPods Pro. On the weekends, I love riding e-bikes like the rugged, beach-friendly Aventon Aventure for fun and fitness.

My job involves a lot of virtual meetings, so a quality webcam, microphone, and ring light are important. I use the Jabra PanaCast 20 webcam, the Elgato Wave: 3 microphone, and a Yesker tripod ring light. 

As for my preferred phone platform, I'm an iPhone person, but I've also extensively used Android for product testing.

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