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TurboTax State Filing Halted

Brad Smith, IntuitIntuit has had better months for TurboTax. A week ago, it said it would reverse a decision to pull key forms from the desktop version of TurboTax Deluxe. This week, it halted transmission of state income tax returns after reports of fraud emerged in 18 states while Minnesota said it was not accepting returns prepared via the Intuit product.

 In a prepared statement, CEO Brad Smith said, "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."

According to articles published in a variety of national media, some customers who filed state returns found that returns had already been filed in their name. USA Today said that reportedly happened to two Minnesota taxpayers while Utah found 28 suspect returns and problems had been discovered in 18 states.

Minnesota's ban does not affect returns prepared via Lacerte, ProSeries or TurboTax Online.

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