Wyden demands refunds for Oregon TurboTax users

Senate Finance Committee Chairman Ron Wyden, D-Oregon, demanded in a letter that Intuit give a refund to Oregonians who, due to a software glitch in the company's TurboTax tax prep software, were steered toward taking the standard deduction when they would have paid less tax if they'd itemized. The senator said the company had known of this glitch in early April, but didn't acknowledge it until shortly before the filing deadline.

The glitch, according to the Oregonian, affected about 12,000 people, some of whom reported having to pay hundreds more in tax dollars than they needed to. They were generally using the desktop version of the software, versus the online version.

"Fixing this error will require identifying all affected Oregonians, notifying them, and ensuring they can be made whole," said the senator. "In part because of TurboTax's various guarantees and market share, Oregonians who overpaid due to TurboTax's error likely assumed the software opted them into claiming state standard deduction to minimize their taxes. That assumption was wrong. And because the vast majority of taxpayers understandably dread filing season and avoid thinking about taxes after it ends, many of those affected will not learn on their own that they overpaid. Intuit must act to inform them and help them get the full tax refunds they are entitled to receive."

Tiffany Hagler-Geard/Bloomberg

An Intuit spokesperson said the company is currently working to resolve the issue, referencing their tax return lifetime guarantee.

"As part of our tax return lifetime guarantee, we are committed to the accuracy of TurboTax tax filers' tax returns to ensure they receive the maximum refund possible. We are quickly working to resolve an issue impacting a small number of customers and actively engaging with those filers impacted to ensure their returns are correct and that they receive the maximum refund they are owed," said the spokesperson.

The senator has also asked Intuit for an explanation of how this glitch happened in the first place, as well as an approximate timeline for the steps it took once it became aware of it. He has also asked for a count of precisely how many people were affected, as well as Intuit's plans for both addressing this problem and what the company will do to prevent it in the future.