The troubles with TurboTax that prompted Friday's warning to Minnesota taxpayers will be cleared up by the end of the day Monday, Terri Steenblock, assistant commissioner of Individual Taxes at the Minnesota Department of Revenue said Monday.
Some taxpayers will have to file amended returns, but Intuit, parent company of TurboTax, said it would pay for any additional tax preparation costs for affected taxpayers.
The state first became aware of problems with TurboTax and other Intuit products about two weeks ago when Intuit notified the department that if was holding back about 11,000 returns until the company could adapt the Minnesota tax-return software to recent federal tax law changes.
Later, the department received some complaints from taxpayers about errors they found in their completed returns, including political contributions designated to the wrong party and the failure to apply education credits to multiple dependents.
The state identified 13 issues with the various software products.
"On Friday, Intuit notified us that they couldn't guarantee there were not other issues," Steenblock said.
Intuit worked through the weekend to resolve the issues, according to company spokeswoman Julie Miller.
“Intuit released fixes today to resolve programming errors in our consumer and professional tax products and is communicating directly with affected customers who file returns in the state of Minnesota. We’ve had all hands on deck to address these issues and reassure the state and our customers that our Minnesota state products are accurate and complete," said Bob Meighan, Intuit vice president.
For the most part, if taxpayers prepared their taxes with TurboTax, Lacerte, Intuit online, or ProSeries and have already filed electronically, the state believes it can correct any problems with the returns, Steenblock said. "If changes are too confusing, we will ask [the taxpayer] to file an amended return."
For taxpayers who were affected by the software errors and filed their state return by mail, an amended return will have to be filed. Intuit said it will notify all affected customers and explain how to refile.
“Intuit will issue refunds to affected Minnesota state TurboTax customers for the full amount of their tax preparation fees. Nothing is more important to us than delivering an accurate return to our customers and building the trust and confidence professional preparers and taxpayers have in Intuit,” Meighan said.
Not sure if you need to take any action? The department has put out a detailed instruction sheet.