NEW YORK — TurboTax, the country’s most popular do-it-yourself tax preparation software, said Friday that it has temporarily stopped processing state tax returns because of an increase in fraudulent filings.
State agencies have reported a rise in filings with stolen personal information, said Intuit. Most victims found out that a fraudulent tax return was submitted in their name when they received a rejection notice after filing their returns, Intuit spokeswoman Julie Miller said. There haven’t been issues with federal returns to date because the Internal Revenue Service has implemented stronger fraud detection policies, Miller said.
Intuit is working with security company Palantir to investigate the problem.
So far, there has been no security breach of its systems, the company said. Instead, it believes personal information was stolen elsewhere and used to file returns on TurboTax.
