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    Michael Hiltzik: The FTC sues TurboTax for trying to keep you from filing your taxes for free

    For what seems like forever, Americans have been asking why it's so damn hard — and expensive — to file their taxes. One reason is that the U.S. tax code is complicated, the result of government's using it not merely to raise money but to implement social goals. But the greater reason is that the tax software industry has made free filing difficult, if not impossible, for tens of millions of ...
    by Michael Hiltzik, Los Angeles Times Mar 29, 2022 6 minutes
    Under Chair Lina Khan, seen here during her 2021 confirmation hearing, the Federal Trade Commission has moved against the maker of TurboTax for deceptive marketing.

    For what seems like forever, Americans have been asking why it's so damn hard — and expensive — to file their taxes.

    One reason is that the U.S. tax code is complicated, the result of government's using it not merely to raise money but to implement social goals.

    But the greater reason is that the tax software industry has made free filing difficult, if not impossible, for tens of millions of taxpayers. That whole sorry history has now been laid out in detail by the Federal Trade Commission.

    In a lawsuit filed Monday in federal court in San Jose, the FTC alleges that Intuit, the maker of the industry-leading tax software program TurboTax, has systematically misled consumers into believing that they could prepare and file their federal taxes for free.

    Only after they've invested time and effort to start the process does the program inform them that they're not eligible for the free service and will have to pay up to continue.

    "TurboTax is bombarding consumers with ads for 'free' tax filing services, and then hitting them with charges when.

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