Intuit glitch leads to mistaken mega-tax refunds

Intuit's software erroneously promised some Ohioans "grossly inflated" tax refunds due to a glitch

Most U.S. residents would be happy to get a few thousand dollars back from the Internal Revenue Service at tax time. But a snafu in some Intuit software recently resulted in a number of Ohio residents receiving letters indicating that eye-popping sums were en route -- in one reported case, a cool US$200 million.

The bug befell Intuit's ProSeries and Turbo Tax software and involved the process by which taxpayers submit requests for a direct deposit of their refunds, Ohio Department of Taxation spokesman Gary Gudmundson said via e-mail.

Intuit worked with the state of Ohio to resolve the problem, spokeswoman Julie Miller said via e-mail Tuesday.

An incorrectly formatted data field in the TurboTax product "affected a small number of customers -- only those returns filed with TurboTax between Jan. 21-24, 2011 and which indicated direct deposit," she wrote. "We immediately fixed the error so no additional filers were affected."

The glitch "in no way affects the accuracy of the customer's return or their true refund amount," Miller added. "We regret any inconvenience this may have caused our customers."

The Sandusky Register newspaper in Ohio reported last week that 9,700 customers received letters "promising grossly inflated refunds." Ohio officials could not immediately confirm that figure.

Now would have been no time for Ohio to be cutting excessive tax-refund checks, given the state's economic woes.

Gov. John Kasich released a 2012-2013 spending plan on Tuesday that includes drastic cuts meant to close a reported $8 billion budget gap.

Meanwhile, U.S. residents have until April 15 to file their income taxes. Intuit competes with a burgeoning array of tax-preparation software services, such as TaxAct and H&R Block At Home.

Chris Kanaracus covers enterprise software and general technology breaking news for The IDG News Service. Chris's e-mail address is Chris_Kanaracus@idg.com

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags business issuessoftwareapplicationsIntuitFinancial / taxH&R BlockJohn Kasich

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Chris Kanaracus

IDG News Service
Show Comments

Cool Tech

Toys for Boys

Family Friendly

Stocking Stuffer

SmartLens - Clip on Phone Camera Lens Set of 3

Learn more >

Christmas Gift Guide

Click for more ›

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Aysha Strobbe

Microsoft Office 365/HP Spectre x360

Microsoft Office continues to make a student’s life that little bit easier by offering reliable, easy to use, time-saving functionality, while continuing to develop new features that further enhance what is already a formidable collection of applications

Michael Hargreaves

Microsoft Office 365/Dell XPS 15 2-in-1

I’d recommend a Dell XPS 15 2-in-1 and the new Windows 10 to anyone who needs to get serious work done (before you kick back on your couch with your favourite Netflix show.)

Maryellen Rose George

Brother PT-P750W

It’s useful for office tasks as well as pragmatic labelling of equipment and storage – just don’t get too excited and label everything in sight!

Cathy Giles

Brother MFC-L8900CDW

The Brother MFC-L8900CDW is an absolute stand out. I struggle to fault it.

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?