Feb 6 (Reuters) - Intuit Inc, the developer of tax-preparation software TurboTax, halted e-filing of state tax returns after it noticed attempts to use stolen identity information to file fraudulent state tax returns and claim refunds.
“We’ve identified specific patterns of behavior where fraud is more likely to occur,” Chief Executive Brad Smith said in a statement. “We’re working with the states to share that information and remedy the situation quickly.”
Intuit said fraudulent activity was not due to a security breach of its systems and that the information used to file fraudulent returns was obtained from outside sources.
The company turned off the e-filing of state tax returns on Thursday and said it will restart it after working with state governments.
The move does not affect the filing of federal income tax returns, and is limited to those states that require residents to file returns, the company said.
Customers who have already submitted their state tax returns using the software will have their returns filed “as soon as possible,” the company said. (Reporting by Amrutha Gayathri in Bengaluru; Editing by Don Sebastian)