The Block spokesman also said his company’s anti-fraud controls include requiring an e-filed federal return to have been accepted by the U.S. “H&R Block continues to file state and federal returns as usual,” he said. H&R Block has no indication of similar problems with its state tax filings, company spokesman Gene King said Friday. There’s no estimate of how many state tax returns have already been filed using TurboTax this year, but last year TurboTax e-filed 21 million state tax returns. Last year TurboTax products were used to prepare 29 million returns, while H&R Block and TaxAct, which is a unit of Blucora, each assisted with about seven million self-prepared returns. Intuit is the biggest player in tax-preparation software. “We’re working with the states to share that information and remedy the situation quickly.” “We’ve identified specific patterns of behavior where fraud is more likely to occur,” said Brad Smith, Intuit’s president and chief executive, in the company’s release.
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It also said it will provide identity-protection services and free credit monitoring, as well as tax-filing help at no charge for affected customers. The tax-software company said customers who believe they are victims of tax fraud can call a dedicated toll-free number, 80. Then, on Friday, TurboTax hosted a conference call with state tax officials, at which the company said it was identifying returns that it believes are fraudulent and those that aren’t. This process for distinguishing between them is proprietary, but fraud indicators could include several refunds wired to one bank account or the filing of a state return without a federal return, said Intuit spokeswoman Ms. On Thursday more than 100 tax officials from dozens of states participated in a conference call organized by the Federation of Tax Administrators to discuss the unfolding situation, according to a spokesman for the group. “Perhaps someone got a name and guessed a password,” she said. The Utah spokesman also said that the recent incidents are "more than normal identity theft where someone steals a Social Security number and makes up information." A key difference: "Fraudsters obtained information that’s generally only found on income-tax returns." In some cases, the fraudulent 2014 returns closely resemble 2013 returns, with only minor alterations-implying that the scammer had access to the taxpayers' 2013 returns.Īny such “account takeovers” weren’t the result of a data breach at Intuit, company spokeswoman Julie Miller said. We just know that our systems weren’t compromised," Mr.
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