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TurboTax maker Intuit resumes state tax filings after earlier halt

February 7, 2015, 1:51 AM UTC
TurboTax Stops State Returns
FILE - In this Jan. 24, 2013 file photo, a customer looks at a copy of TurboTax on sale at Costco in Mountain View, Calif. TurboTax says it has temporarily stopped processing state tax returns due to an increase in fraudulent fillings. Intuit, the company behind the popular tax preparation software, says state tax returns already filed since Thursday, Feb. 5, 2015, will be transmitted as soon as possible. Users can still submit their federal income tax returns.(AP Photo/Paul Sakuma)
Photograph by Paul Sakuma — AP

(Reuters) – Intuit said its tax-preparation software TurboTax had resumed electronic filing of state tax returns late Friday following a temporary halt after noticing attempts to use stolen identity information to file fraudulent returns and claim refunds.

After an investigation by a third-party security expert, the company said the fraudulent returns did not result from a breach of its own systems and that it was adding additional security measures to combat fraudulent activities.

The filing of federal returns had not been affected, Intuit said.

Early on Friday, the company said the information used to file fraudulent returns was obtained from outside sources.

Intuit said it had turned off the e-filing of state tax returns on Thursday.

Minnesota’s revenue department said on Friday it had stopped accepting tax returns submitted via TurboTax, but would continue to accept those filed through Intuit’s professional tax preparation products such as Lacerte, Intuit Tax Online and ProSeries. (http://bit.ly/1v5OHUj)

The department said some taxpayers found that a return had already been filed when they logged in to submit their returns using TurboTax.

Intuit’s shares (INTU) closed down 4.2 percent at $87.83 on the Nasdaq on Friday, having gained 23.7 percent in the last 12 months.

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