TurboTax Is Back After Briefly Shutting Down State Filings Over “Suspicious” Activity

February 9, 2015  |  

A security scare that TurboTax described as “an increase in suspicious filings” prompted the service to shut down a portion of its services last week. Customers can now use its software to e-file state tax returns across the USA once again.

According to the tax preparation software company, it found that stolen personal data was being used to file phony state returns with state authorities. In response, TurboTax turned off the filing feature for almost a day to stop fraudsters from proceeding any potential fraud, reports USA Today.

“We are taking this issue very seriously and from the moment it emerged it has been all-hands-on-deck,” says Brad Smith, CEO of TurboTax publisher Intuit. “I am more than pleased we were able to resume transmission for our customers within about 24 hours.”

The situation came to light after the Minnesota’s Department of Revenue announced it will no longer accept tax filings submitted via TurboTax after two taxpayers in the state logged into TurboTax to submit their tax forms but were informed filings had already been made, reports the StarTribune.

When TurboTax conducted an internal investigation it found that it did not have a security breaches of their; the criminals had gotten the personal information from somewhere else.

If you have done an e-filing with Turbo Tax for their state returns, they should have any problems, according to the company. TurboTax will retransmit the again when they solve the security issue.

Federal tax returns were not affected and those services were never halted.

It hasn’t been an easy past few months for TurboTax.

Users of the software have been complaining about a hidden price increase which caused many investors and self-employed people to pay 50 percent more for the software. So the company suggests that anyone who purchases the less expensive Deluxe version to upgrade to the Premier or Home & Business version for free.

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