TurboTax has turned off the ability of its software to e-file state tax returns across the USA Thursday after the company found “an increase in suspicious filings,” the company said Friday.
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.
-Courtesy of USA Today