Earlier today, From The G-Man reported that Governor Andrew Cuomo has called on the New York State Department of Financial Services and the New York State Department of Taxation and Finance to investigate TurboTax, H&R Block and other major tax return preparers following recent reports that these companies allegedly used Google advertisement and website features to deceptively hide additional tax filing options from low-income individuals who are eligible to file their taxes for free.
"The allegations against these major tax return preparers are disturbing, and New York will not stand idle as the public's interest is undermined in order to pad the profits of wealthy corporations," Governor Cuomo said. "I am calling on the Department of Financial Services and the Department of Taxation and Finance to investigate these claims to help ensure New Yorkers are protected. We have zero tolerance for these deceptive practices and those responsible will be held accountable for these egregious actions."
Americans with an adjusted gross income of $66,000 or less are eligible to file their taxes for free through the Free File Alliance -a partnership between the IRS, tax software providers and states - including New York. According to the reports, the websites of the tax software providers steered consumers into paying for services when they were eligible to file their taxes for free, and hid these free filing options from Google searches.
From The G-Man contacted H&R Block's corporate office today via email and requested comment on the directive issued by Governor Cuomo. The following statement was submitted by Susan Waldron, who serves as the company's director of communications.
"H&R Block is proud to have helped millions of Americans file their returns under the Free File program. As a member of the Free File program, we provide the program’s broadest offer for Americans to file their taxes for free, including allowing taxpayers between the ages of 17 and 51 whose income is less than $66,000 to file both their federal and state returns for free.
"We are pleased that consumers’ use of H&R Block’s Free File program grew 8.3 percent this tax season, exceeding the Free File program growth of 6.8 percent.
"H&R Block offers multiple free filing options including the H&R Block Free File program, which is part of the IRS Free File program. In addition, consumers can choose other options to get their taxes filed for free with H&R Block. These options include our free online product, our MyFreeTaxes partnership with the United Way, and our partnership with Military One Source. Our goal is to avoid consumer confusion about our free options. We have updated our practices to make H&R Block’s Free File offer even easier to find."
"The allegations against these major tax return preparers are disturbing, and New York will not stand idle as the public's interest is undermined in order to pad the profits of wealthy corporations," Governor Cuomo said. "I am calling on the Department of Financial Services and the Department of Taxation and Finance to investigate these claims to help ensure New Yorkers are protected. We have zero tolerance for these deceptive practices and those responsible will be held accountable for these egregious actions."
Americans with an adjusted gross income of $66,000 or less are eligible to file their taxes for free through the Free File Alliance -a partnership between the IRS, tax software providers and states - including New York. According to the reports, the websites of the tax software providers steered consumers into paying for services when they were eligible to file their taxes for free, and hid these free filing options from Google searches.
From The G-Man contacted H&R Block's corporate office today via email and requested comment on the directive issued by Governor Cuomo. The following statement was submitted by Susan Waldron, who serves as the company's director of communications.
"H&R Block is proud to have helped millions of Americans file their returns under the Free File program. As a member of the Free File program, we provide the program’s broadest offer for Americans to file their taxes for free, including allowing taxpayers between the ages of 17 and 51 whose income is less than $66,000 to file both their federal and state returns for free.
"We are pleased that consumers’ use of H&R Block’s Free File program grew 8.3 percent this tax season, exceeding the Free File program growth of 6.8 percent.
"H&R Block offers multiple free filing options including the H&R Block Free File program, which is part of the IRS Free File program. In addition, consumers can choose other options to get their taxes filed for free with H&R Block. These options include our free online product, our MyFreeTaxes partnership with the United Way, and our partnership with Military One Source. Our goal is to avoid consumer confusion about our free options. We have updated our practices to make H&R Block’s Free File offer even easier to find."
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