It's tax season and many Americans are using TurboTax's e-filing option to submit their federal and state tax returns. But, TurboTax recently shut down e-filing of state tax returns for a few days after 19 states spotted attempts to submit fraudulent returns.
Utah, the first state to reach out to Intuit, issued a statement on Thursday, saying that the state tax commission had discovered 28 fraud attempts that "originate from data compromised through a third-party commercial tax preparation software process," as well as 8,000 returns flagged as potentially fraudulent.
Several states, including Minnesota, stopped accepting returns filed through TurboTax due to the situation. However, TurboTax has been investigating the problem and hasn't found any evidence of a security problem on its end and has resumed e-filing for state returns.
Instead, it found evidence that the identity information used to file the fake returns was "squeezed from external sources." Even though it's not taking the blame, TurboTax is still beefing up its security measures to combat fraudulent filing.