TurboTax review: accuracy guarantee class action suit? 29

Almost same inof, hae a small home business and used their special software for small businesses. Followed all their prompts and forms and then Bam! in Oct 2007, the IRS called me and said I owed $15, 000 in back taxes because TurboTax had duplicated deductions from Schedule C on Schedule A. Tried to comtact TurboTax and got nowhere! Now I'm stuck with a repayment plan with IRS that will probablynever get paid off.
Joann R, Mt. Dora, FL

I have been adversely affected by my reliance on the Intuit 'guarantee'. They tell you NO MATTER WHAT do not speak to the IRS but if you don't the IRS will not be happy! I have been treated with disinterest and constant threats of 'recusing' themselves from my case if I don't jump high enough fast enough. They wanted information from 15 years ago for an audit from just three years ago! (past husband's info... not even remotely on this return being audited!).

They have hung up on me a number of times and refuse to give me a refund. I am forced to contact the IRS agent myself and hope all goes well.

I would LOVE to be a part of a class action suit against them!

ADF

We are involved in the same issue as the original post from Cate in Virginia. Just received a letter from the IRS regarding our 2007 return about the double entry of 1098's which the Turbo Tax program prompted us to make! We would like to explore this issue further with Cate and Joann from Florida but do not know how to connect. We can be reached at jackie.baumann@gmail.com. Please contact us as we are now in the process of having to hire accountants, lawyers etc. to solve this issue!

this is what turbotax said:

Please wait while we find an agent to assist you...
All agents are currently busy. Please stand by.
An agent will be with you in a moment. Thank you for your patience.
You have been connected to 01_Bianca M.
01_Bianca M: Thank you, Alicia Cain, for contacting TurboTax Consumer Group, may I have a moment to read your question?
Alicia Cain: yes
Alicia Cain: the email in which you emailed us is scottcain12@yahoo.com
01_Bianca M: I understand you have contacted us because you want a refund because your return was rejected and you did it over?
Alicia Cain: yes and it was rejected because of the software issues
01_Bianca M: What was your rejection code?
Alicia Cain: Hang on I will get it
01_Bianca M: Thanks
Alicia Cain: Here are the details: The secondary taxpayer's date of birth on this return does not match what the IRS has in its files. The IRS receives this information from the Social Security Administration (SSA).
Alicia Cain: I was correct when I entered it
01_Bianca M: Ok
01_Bianca M: So the info on your return was correct and you were rejected by the IRS servers. This is not a computer software glitch.
01_Bianca M: When you send your return electronically the return go to the IRS computer servers and does not get to an IRS personnel till after the server accepts in
01_Bianca M: it
Alicia Cain: well how come when I tried to get back on turbotax it continued giving me errors and would not go to the file which we saved
01_Bianca M: What other errors are you getting?
Alicia Cain: It did accepted it then rejected it
Alicia Cain: it was accepted on january 28th then rejected on the 29th
01_Bianca M: The return can not get accepted then rejected. Im sorry. At the moment what is the status of the return>?
Alicia Cain: error 510
01_Bianca M: please give me a moment
Alicia Cain: We had to resubmit all the information over again and it said successful
01_Bianca M: ok
01_Bianca M: what version of turbotax did you use?
Alicia Cain: where do i find info
Alicia Cain: turbotax delux
01_Bianca M: ok
01_Bianca M: did you use online or disc?
Alicia Cain: disc
01_Bianca M: ok
01_Bianca M: The error of 510 is usually an error when you enter in a ss# incorrectly
Alicia Cain: my operating system is vista
Alicia Cain: it was correct I and my husband both looked over everything
01_Bianca M: Ok
01_Bianca M: If the IRS server rejected your ss# that is not a turbotax error
01_Bianca M: that would be an IRS server error
Alicia Cain: well how can you explain the software giving me an error every time I try to open up the turbotax file
01_Bianca M: What is the error you get when you try to open the program?
Alicia Cain: 510
01_Bianca M: Give me a moment please
The agent is sending you to http://turbotax.intuit.com/support/go/2130.
01_Bianca M: Please view this link
Alicia Cain: the e file was successful then rejected by the irs then
01_Bianca M: This link has a solution to the error and the probable causes of the error.
Alicia Cain: I was unable to access the file
01_Bianca M: I am very sorry about the issues you have been experiencing.
Alicia Cain: I am not the only one complaining I searched and found a lot of people with the same thing
01_Bianca M: Im very sorry about the error. This error is not very common at all but we do have a fix for it.
Alicia Cain: I cannot access the old file at all now I can only access the file we had to start over
Alicia Cain: we saved the file on a backup file too
01_Bianca M: have you viewed the link i have provided you?
01_Bianca M: You would have to save the return on a portable drive such as a usb drive
Alicia Cain: yes but it is not any help
Alicia Cain: why portable
01_Bianca M: Where did you save the file. Please disregard my commet about the portable
01_Bianca M: if you save it to a thumb drive or flash drive ti can cause corrution to your file
Alicia Cain: on my backup hard drive E:/ file
01_Bianca M: ok
01_Bianca M: awesome
01_Bianca M: Can you open your program ?
Alicia Cain: I can open the program but not that file
01_Bianca M: thats fine
01_Bianca M: So what you need to do is open the program then go to start a new return.
01_Bianca M: You will want to search for a .tax file and try to open the file in a new return on the program please
Alicia Cain: I have done that and had to resubmit the return and it was accepted my problems is that I had to wait longer it was a waist of money and time
Alicia Cain: I can open up the new status just not the old
01_Bianca M: I am very sorry. Did you use the program to efile the return?
Alicia Cain: yes only federal we mailed the state
01_Bianca M: Thank you.
Alicia Cain: If I cannot get a explaination for this I will never use your software again
01_Bianca M: What do you want an explanation for please? I have already sent you a link that will solve the error when you try to open the file and why your return was rejected.
Alicia Cain: false advertising
01_Bianca M: About what?
Alicia Cain: another customer lost
01_Bianca M: Have a good ady
01_Bianca M: day
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There is much validity to the complaints against Intuit and the way they have denied the problems with their 2007 tax package. Our mortgage interest on rentals was double counted also--transferred from Schedule C to Schedule A without our knowledge--and we have incurred a tremendous amount of IRS debt as a result of this software error. My initial complaint was on the telephone with an Intuit tax rep who duplicated the problem while I was speaking with him on the phone. He confirmed that the software glitch in an e-mail and then asked me to forward our tax files. Once he reviewed our files, he e-mailed to say that "we" had entered the interest twice. I think Intuit deserves a class-action lawsuit because what they are doing is not right.

I'm having a very similar problem. Turbo Tax's responses to my claim are inadequate. I've repeatedly asked to escalate my claim and they completely ignore all of my e-mails. They say the guarnatee accuracy but don't take claims seriously. I would gladly sign up for a class action suit.

I've just been refused support for a Turbo Tax 2009 mistake on the claim that I overrode the software. Nonsense. I look at the file and it remains clearly in the software's automated control. Nor would I have overridden a number in which the form gives clear and simple instructions. My only mistake was trusting that the software's "double check" was accurate. My guarantee would have been for a small amount, but nevertheless I'm deeply offended that the customer service person would blame me for a software mistake in transferring Federal info to the California form.

I've got some connections in Virginia if you want to get an attorney involved. An AV rated law-firm in Virginia can send a letter to turbo tax's legal department to get the ball rolling on this. Let me know if you're interested, and I can get them to do this for a lot less then they normally charge.

Patrick Salisbury
[protected]
clonerstive@gmail.com

I can get you a discount on an attorney from the firm as well if you do decide to take this to court.

I've always got my phone on me. Good luck, Cate! :)

I have a problem with my 2009 tax filing that was completed with TurboTax. We reported married filing joint. However, each person, assuming they are employed, was supposed to pay at least $6621 in social security taxes. Because my husband did not work the full year, he only ended up paying $5000 in social security taxes. However, TurboTax combined all social security taxes under my name, and incorrectly reports a social security credit of $5054, which resulted in a refund to us. However, the IRS now wants their refund back stating that once a person signs their tax return, they are stating that it is accurate. The problem that I have is that there is no way for me to know that TurboTax made a computation error on the back end because the return that I see doesn't break out the information for me and my husband separately, otherwise I would have caught TurboTax's error. If there is someone wanting to start a class action lawsuit, then count me in.

We too are having an issue with doubling on our turbotax return. I am speaking with a lawyer today regarding all of this. It has happend 3x now with turbotax. However, we were not made aware by the IRS until recently and were hit with three years of double of various sections. The doubling occured when we went between joint and married to see which would benefit us more. Thus, numbers would double and we did not know it until just recently. I am sure their are more people out there that this has happened too and the problem needs to be resolved. This is and IRS field day!

I just received a letter from the IRS for the exact same thing EDuggins described above. My 2009 return calculated over $4000 in excess social security and now the IRS wants it back NOW with interest - luckily (not) for me no penalties - yet. This was a TT calcuation that there was no way for me to catch. I think TT should be actively contacting all users of the 09 software regarding this error. I also think a class action is in order - if not I am thinking of going after them for more than the interest on this.

For people who have been audited on their 2009 tax returns about excess social security, please view this TurboTax forum which has plenty of people up in arms about it. https://ttlc.intuit.com/post/show_full/beReqeEyqr4kdpacfArfP2/irs-audit-excess-social-security-tax-withheld
Sadly, they are not owning up to it and we need to stand firm and join together to fight this battle against them. If worst comes to worst, we will get the word out and have them lose business over this issue.

We have been contacted by the IRS regarding reporting of distributions for 2009 tax year. We used the online software so Turbotax sent us the desktop version and asked us to re-do the taxes and see if they came out differently. Sure enough, they did. Researching the question on the Turbotax website it appears other people have the same problem - anyone who would have data on lines 15 or 16...when the amount should be in 15/15 (b) Turbotax put it in 15/16 (a), resulting in the distribution not being included in taxable income. We will now have to pay the IRS for the difference, and Turbotax's "accuracy guarantee" says IF they are wrong they will cover the interest and fees FROM THE FIRST STATEMENT ONLY. Obviously they don't have much faith in their accuracy. Seems to me there have got to be a lot of people who would be affected by this software bug!

I am pretty upset. While the IRS was trying to investigate my first time home buyers credit for 2009 (probably so they could get it back), they found mistakes on 3 tax years. Its the same mistake listed in the first post. There are two spots in turbotax where it asks for mortgage interest and taxes, but it seems that the same values ended up on schedule E and schedule A. So I reported double the interest and taxes for one of my homes. Now I have to pay $11, 000 including penalties and interest. In a day where we are building robots to land on Mars, surely Turbotax can find a solution to this bug.

Why would you think you can avoid using a CPA when doing a complex return - do you do your own dentistry?

Good news, I made my case with the IRS regarding this Turbo bug, the refunded the penalties and interest. There is a God.

Has any one had a problem with being walked through a Federal income tax, and had the TurboTax people do a shared screen view...and completely MISS something? I am now being told that I owe the IRS almost 2000 for my 2010 tax return...

has any one had a problem with turbotaxes "GPS" when i used there "GPS" it made me skip a part i own the IRS 35, 000 for my 2011 tax return i will not use the "GPS" ever again

I have received and acted on IRS audit notices four times in the last 3 years - all since I began using Turbo Tax systems. Of course, I subscribed to their legal defense service - thinking this would correct the problems. Even they (Tax Resources) told me that there were glitches in the T.T. systems with miscalculations; however, this did not keep the IRS off my back. Here it is, 2012: I am still receiving notices of taxes due for [protected] with penalites and interest due of course. I am a school teacher. I cannot afford to hire another attorney in my defense. I have paid well over $3, 000. in penalties and interest to the IRS - because most of the time, they don't even send out an audit notice until a year after the taxes were filed. I am in Houston TX. and this year (for 2011) I paid a reputable accountant to do my taxes. It has already been worth the fees in my peace of mind. Is anyone out there with me? I really don't want a slew of lawyers contacting me here, but I would be interested to know if there is a class action suit happening now and how to join it.

Experiencing same problem with IRS audit. Mortgage interest is being reported twice and now I'm being hit with a huge IRS bill for taxes, interest and penalties. So far 2009 and 2010 are affected. There needs to be a class action suit NOW. It is ridiculous that the IRS endorses Turbo Tax.

Yes TT is not holding their side of the bargain. I don't trust this software any more. With Tax Cut I was never audited, with TT after only 2 years here comes IRS audit. I think IRS knows about glitches in this software and goes after people that use it. I will avoid TT in the future and use Tax accountant. When I called about support they told me that since I did not pay extra 39.99 for their defense program I am on my own left to documents and articles I don't really understand well. Reading some other posts it seems like even if you pay extra for their accounting support it is not worth a grain of salt. I should have known this, TT is Intuit product and their support is non existent and they basically don't care at all about their customers.

I received notice from IRS, now owe almost $2000 in penalties because turbo tax software did not carry an IRA distribution to the total taxable income. They denied my claim. Most of these posts are older. Is there a class action suit?

I received a notice from the IRS that my 2012 1040 was incorrect in that I failed to declare income from an IRA and assessing me over $1900.00 in interest and penalties. On April 16, 2014 I filed a claim under the TurboTax Accuracy Guarantee as I had clearly checked the radio button stating I did not rollover the amount received. Per TurboTax instructions, I attached my return's data file and waited for their reply. I received a reply on May 6, 2014 denying my claim stating I had not checked the rollover button and even included a screen shot of my return showing the button not checked. I looked at the return myself in my file and saw the button was checked. I emailed my own screen shot of the return and asked for an explanation. I heard nothing until June 3 when I emailed again asking for status. TurboTax refereed me to their screen shot and again denied the claim. I also noticed the screen shot from TurboTax was for the "Home and Business" software version. I used the "Deluxe" version and I also noticed the file names did not match. This was NOT my return. I quickly pointed this out and they again replied the version didn't matter and they change the file names. They are denying a legitimate claim as their software was faulty. This situation is not unique to me and I hope there is a class action suit somewhere I can join. I have been a loyal TurboTax customer for over 25 years but that ends now.

I used Turbotax in 2012 to file my taxes. It was determined that I have entered all numbers correctly and there was an error on turbotax's part on inaccurately computing the taxable amount. When I filed my taxes turbotax states they have a 100% accuracy guarantee which does not follow with ONLY penalties and interest. I now owe 1515.00 and turbotax is only willing to pay 55.00. My husband is disabled and on social security. We do not have sufficient income to pay this amount especially in such a short amount of time. This is a major error on Turbotax's part that is creating a hardship for us. Not to mention the stress is not good for my husbands health. I am not able to pay this and will have to wait till next tax season to pay it which will result in additional penalties and interest.

I just received a letter from the IRS about our 2013 taxes. Saying our INCOME was wrong. I know what I put in! I put in the correct 2013 wages and taxes withheld but somehow when I clicked submit return something happened with TurboTax and it deleted all of our wages and taxes withheld and transferred over all of our 2012 wages and taxes withheld!(This is the ONLY THING that could have happened ) Now the IRS wants $2600. TurboTax keeps giving me the run around the accuracy guarantee give them 2 months yadda yadda I still have yet to receive an email back from them since I submitted my claim Sat . I have called several times and keep getting different information until today and the lady says well we wont pay anything but interest! AHHHH!

I own a rental property in Canada, which I purchased in 2005 and have used Turbotax to prepare all of my returns since. When preparing my 2014 return TurboTax informed me that I have been taking too much depreciation on the property and will have to file amended returns plus a Form 3115 requesting a change of accounting method with the IRS. The problem arose because the TurboTax software applied the depreciation method for a US-based rental property even though "Easy Step" specifically asks if the property is in a foreign country (to which I always selected "yes"). I now have to claim $18, 000 in additional income and pay taxes on it. On the TurboTax forum numerous other users were caught in the same trap. When I contacted TurboTax they refused to admit responsibility for their programming error and I was on my own filling out the Form 3115. Now I wait to find out if the IRS will audit me due to this irregularity.

I was also audited by IRS saying that I owed them $5662 dollars plus $1132 in understatement penalty plus $345 in interest for a grand total of $7139.00 dollars I looked at my turbo Tax statement for 2015 and noticed what the IRS had found. the turbo software didn't carry over my pension amount in line 16a in full so I didn't pay taxes for $16, 000 dollars and I was being charged for that money. I will never use Turbo Tax again. I checked my taxes for 2016 and found that the Turbo Tax has done the same mistake, I'm not waiting for IRS to slap me with another you owe penalties and interest. I'm refiling my 2016 income tax.
if there is a class action suit against Turbo Tax please include me.
Felipe from Waterford California

Just used Turbo tax to figure a friends 2018 taxes. Their end result was an extra credit of $541 for healthcare premium credit. Of course that would be an additional 39.99 to file the form to get it. Trouble is...I know taxes and had already done the taxes at irs.gov in their fillable forms and my results said a $300 repayment. So a $841 discrepancy that would have to be paid back to the irs. I decided to check my numbers with the irs to ensure the credit wasnt legit...it wasn't. My numbers were right and he owed them $300. So they planned to charge $39.99 for the privilege of getting $841 that would need to be payed back with a penalty because turbo tax screwed up his healthcare credits two years ago and he had to repay. 2nd offense is a penalty. And from what I read on forums...turbo tax goes nothing for you when the irs comes after you.

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