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Minnesota stops accepting TurboTax returns due to possible fraud

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Minnesota's Revenue Department announced Thursday evening that it has stopped accepting tax returns that were prepared using TurboTax because of potential fraud.

The department's announcement says some recent users have found that when they log into TurboTax they see that a return has already been filed.

The Revenue Department will continue to accept returns prepared using other tax software programs – including others made by Intuit, the company that owns TurboTax.

Implications from a TurboTax breach could be far-reaching. The Star Tribune notes reports it accounts for 60 to 65 percent of the market, with nearly 30 million customers nationwide.

Minnesota officials are in contact with Intuit about the issue and say the company plans to open a dedicated hotline at 8 a.m. Friday to handle questions. The phone number is 1-800-944-8596.

The Salt Lake Tribune reports Utah's State Tax Commission has flagged 8,000 returns filed with TurboTax as potentially fraudulent.

Radio station KGMI in Bellingham, Washington, spoke with a woman who said she logged into TurboTax to find that an imposter had already filed a return for her and was expecting a $5,000 refund.

A revenue official tells the Pioneer Press that Minnesota has flagged "a couple thousand" TurboTax returns for review.

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