TurboTax Resumes State E-Filings After Data Breach Investigation
Many taxpayers were faced with a rude awakening last Thursday when they went to file state taxes through the popular online platform, TurboTax. Intuit, the parent company of TurboTax, temporarily shut down filings in 18 states to investigate a possible data breach on their e-filing system.
The investigation was launched after these 18 states reported that taxpayer data had been compromised, and all fingers seemed to point to TurboTax. The state of Minnesota went as far as to stop accepting returns filed through TurboTax.
The filing of federal income tax returns were not affected.
Intuit reached out to a third-party security firm, Palantir, to investigate a possible data breach for these state e-filings. After an extensive investigation, Palantir and Intuit concluded that there was not a data breach on TurboTax’s network, and that the data had been leaked before users tried to file online. Those users who tried to file but discovered someone had already filed a return in their name had their information stolen before the TurboTax program was used.
Intuit quickly reopened their e-filing services on Friday so taxpayers could file their state returns. The company is currently working with state governments to address their concerns about a breach.
“We’ll continue to remain vigilant, but I am more than pleased that we were able to resume transmission for our customers within about 24 hours,” said Intuit’s president Brad Smith in a statement.