TurboTax restores state service, but Minnesota still not accepting returns

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TurboTax announced Friday that it has restored the ability of its software to e-file state tax returns across the country, after earlier turning it off because of "an increase in suspicious filings."

The Minnesota Department of Revenue stopped accepting TurboTax filings Thursday evening because of the potential fraud. The company itself then stopped filing nationwide because it discovered an increase in criminal activity where stolen personal data was used to file fake state returns.

"We are taking this issue very seriously and from the moment it emerged it has been all-hands-on-deck," Intuit CEO Brad Smith told USA Today. "I am more than pleased we were able to resume transmission for our customers within about 24 hours."

While TurboTax has resumed its state services, the Minnesota's Department of Revenue still isn't accepting returns filed with the software.

According to the Pioneer Press, – who waited 72 minutes to talk to a company representative on TurboTax's "identity protection line," – the company expects the filing pause in Minnesota will be temporary.

A TurboTax representative told the newspaper, "it should end in a few days," after state tax officials approve lifting the pause.

"That [temporary pause] is not something we take lightly because we know how that affects taxpayers, but it's also imperative to us that we make sure we're protecting taxpayer information," the Department of Revenue's Terri Steenblock told KSTP.

About 270,000 Minnesota taxpayers have already filed their state taxes and revenue officials flagged several thousand that used TurboTax for further review.

The TurboTax representative told the Pioneer Press that if the state reviews a return, the filer can expect their refund "in full," but likely later than those who were not selected for a review.

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