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

Bang and Olufsen Beosound Stage - Dolby Atmos Soundbar

Learn more >

Toys for Boys

Sony WF-1000XM3 Wireless Noise Cancelling Headphones

Learn more >

ASUS ROG, ACRONYM partner for Special Edition Zephyrus G14

Learn more >

Nakamichi Delta 100 3-Way Hi Fi Speaker System

Learn more >

Family Friendly

Mario Kart Live: Home Circuit for Nintendo Switch

Learn more >

Philips Sonicare Diamond Clean 9000 Toothbrush

Learn more >

Stocking Stuffer

Teac 7 inch Swivel Screen Portable DVD Player

Learn more >

SunnyBunny Snowflakes 20 LED Solar Powered Fairy String

Learn more >

Christmas Gift Guide

Click for more ›

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Tom Pope

Dynabook Portégé X30L-G

Ultimately this laptop has achieved everything I would hope for in a laptop for work, while fitting that into a form factor and weight that is remarkable.

Tom Sellers

MSI P65

This smart laptop was enjoyable to use and great to work on – creating content was super simple.

Lolita Wang

MSI GT76

It really doesn’t get more “gaming laptop” than this.

Jack Jeffries

MSI GS75

As the Maserati or BMW of laptops, it would fit perfectly in the hands of a professional needing firepower under the hood, sophistication and class on the surface, and gaming prowess (sports mode if you will) in between.

Taylor Carr

MSI PS63

The MSI PS63 is an amazing laptop and I would definitely consider buying one in the future.

Christopher Low

Brother RJ-4230B

This small mobile printer is exactly what I need for invoicing and other jobs such as sending fellow tradesman details or step-by-step instructions that I can easily print off from my phone or the Web.

Featured Content

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?