Full History Of TurboTax In Timeline From 1984

1984: TurboTax Launch

TurboTax was first developed in 1984 by Michael A. Chipman of Chipsoft.

1993: Intuit Acquires Chipsoft

Intuit acquired Chipsoft, the maker of TurboTax, in 1993.

2001: TurboTax Security Vulnerability Exposed

A programming error in 2001 resulted in TurboTax saving user's financial institution login credentials on Intuit servers and personal computers, posing a security risk.

2001: Geithner's Use of TurboTax

Timothy Geithner used TurboTax to prepare his tax returns from 2001 to 2004, during which he encountered issues with self-employment taxes.

2003: TurboTax Removes Product Activation After Criticism

Intuit faced criticism for its product activation scheme in TurboTax and subsequently removed it in 2003.

2003: TurboTax DRM Causes Computer Issues

The 2003 version of TurboTax used a digital rights management system that interfered with some computer boot loaders, rendering affected machines unbootable.

2004: Geithner's Use of TurboTax

Timothy Geithner used TurboTax to prepare his tax returns from 2001 to 2004, during which he encountered issues with self-employment taxes.

2005: TurboTax Joins Free File Alliance

TurboTax began offering a free version for taxpayers with an adjusted gross income of $28,500 or less ($52,000 for military personnel) through the Free File Alliance.

2006: TurboTax Limits Free Filing Options

TurboTax limited its free filing offer to online federal tax preparation and e-filing for eligible taxpayers.

2007: Intuit's Lobbying Efforts Against Free Filing Options

Intuit lobbied on bills in 2007 and 2011 that aimed to prevent the Treasury Department from implementing return-free filing systems.

December 12, 2008: Intuit Reverts "Pay Per Return" Policy After Backlash

Intuit introduced and then quickly rescinded a "Pay Per Return" policy due to criticism. The policy would have charged users for additional returns filed beyond the first one.

2008: Intuit's Lobbying Efforts Against Free Filing Options

Between 2008 and 2012, Intuit engaged in lobbying efforts to oppose IRS initiatives for free tax filing options, particularly pre-filled returns.

January 21, 2009: TurboTax in the Spotlight During Geithner Hearing

TurboTax was mentioned during Timothy Geithner's confirmation hearing for Treasury Secretary. Geithner had used TurboTax but made errors in his self-employment taxes. This incident highlighted the importance of accurate data entry even when using tax software.

2011: Intuit's Lobbying Efforts Against Free Filing Options

Intuit lobbied on bills in 2007 and 2011 that aimed to prevent the Treasury Department from implementing return-free filing systems.

2012: TurboTax Changes Data Retrieval Method

As of 2012, TurboTax stopped offering direct downloads of financial data, requiring users to input their login credentials or enter data manually.

2012: Intuit's Lobbying Efforts Against Free Filing Options

Between 2008 and 2012, Intuit engaged in lobbying efforts to oppose IRS initiatives for free tax filing options, particularly pre-filled returns.

2012: Intuit Expresses Concerns Over Government Encroachment

Intuit's 2012 Form 10-K filing revealed the company's concerns about government involvement in the tax preparation market potentially threatening its business.

2013: Intuit Defends Lobbying Activities

Intuit publicly defended its lobbying efforts, stating that it actively participates in the political process.

January 2015: Intuit Removes Support for Schedules in Deluxe and Premium Versions

Intuit removed support for some IRS schedules in the interview mode of its Deluxe and Premium versions, drawing criticism from users.

February 5, 2015: Intuit Reinstates Removed Schedules After Backlash

Following criticism, Intuit backtracked on its decision to remove certain IRS schedules from its Deluxe and Premium versions in 2015. The company issued an apology and reinstated the schedules.

February 15, 2015: Intuit Halts State Tax Return Transmissions Due to Fraud Concerns

Intuit temporarily stopped transmitting state e-filed tax returns due to an increase in reports of fraudulent refund claims.

February 22, 2015: Former Employees Allege Fraudulent Return Processing Scheme at Intuit

On February 22, 2015, allegations surfaced from two former Intuit security team members claiming the company knowingly allowed fraudulent tax returns to be processed to boost revenue. They asserted that Intuit disregarded their warnings and suggestions for fraud prevention. One employee reportedly filed a whistleblower complaint with the US Securities and Exchange Commission.

2017: Calls for TurboTax Boycott

Journalist Dylan Matthews urged a boycott of Intuit and TurboTax in 2017 due to the company's lobbying against free tax filing options.

2017: Canadian TurboTax Rebranding

The French Canadian version of TurboTax, previously called ImpôtRapide, was renamed to TurboImpôt.

December 30, 2019: IRS Restricts TurboTax from Hiding Free Version

Following a new agreement with the IRS, TurboTax was prohibited from hiding its free version from search engine results. This came after reports of TurboTax using tactics to steer users away from the free version.

2019: ProPublica Investigation Reveals Deceptive Practices

In 2019, a ProPublica investigation found that TurboTax was deliberately making its free version difficult to find, steering users towards paid versions even when eligible for free filing. This included misleading tactics targeting military service members.

July 15, 2021: Intuit Withdraws from Free File Alliance

Intuit announced its withdrawal from the Free File Alliance, citing limitations and conflicting demands.

October 2021: Intuit's Withdrawal from Free File Alliance Takes Effect

Intuit's withdrawal from the Free File Alliance became effective.

2021: TurboTax Stimulus Check Diversion Issue

In 2021, TurboTax faced scrutiny when some users experienced issues receiving their stimulus checks. The payments were allegedly diverted to outdated or unused customer bank accounts held by TurboTax.

March 29, 2022: Federal Trade Commission Announces Legal Action Against Intuit for Deceptive Advertising

On March 29, 2022, the Federal Trade Commission (FTC) announced legal action against Intuit, TurboTax's parent company, citing deceptive advertising practices related to its free tax filing products. The FTC argued that TurboTax misled customers into believing they were eligible for free filing when most were not, particularly those with farm income or gig economy earnings. Intuit countered the FTC's claims, stating their free service was available to all taxpayers.

May 4, 2022: Intuit Settles Misleading Advertising Lawsuit for $141 Million

On May 4, 2022, Intuit agreed to a $141 million settlement addressing the misleading advertising lawsuit.

May 2023: Intuit Begins Issuing Settlement Checks to Customers

In May 2023, Intuit began distributing settlement checks, ranging from $30 to $85 USD, to over 4 million customers affected by the misleading advertising practices.

January 2024: FTC Orders Intuit to Rectify Misleading "Free" Tax Software Ads

In January 2024, the FTC directed Intuit to correct its misleading advertisements for its "free" tax preparation software, highlighting that most taxpayers did not qualify for the offer.

March 2024: Intuit Discontinues Free TurboTax Service

As of March 2024, Intuit discontinued its free TurboTax service.

History of TurboTax in Timeline