TurboTax resumes processing state tax returns, adds security

NEW YORK (AP)—TurboTax, the country’s most popular do-it-yourself tax preparation software, halted processing state tax returns for about 24 hours because of a spike in fraudulent filings.
Intuit, the company behind TurboTax, said it resumed filing of state returns at about 6 p.m. Eastern time Friday with increased anti-fraud measures, a day after halting the process when state agencies reported a rise in filings with stolen personal information.
Most victims found out that a fraudulent tax return was submitted in their name when they received a rejection notice after filing their returns, said Intuit spokeswoman Julie Miller.
There haven’t been issues with federal returns to date because the Internal Revenue Service has implemented stronger fraud detection policies, Miller said.
Intuit is working with security company Palantir to investigate the problem.