By Mark Scott
Buffalo, NY – State Attorney General Eliot Spitzer has reached a settlement with a leading software maker to fix an error in its popular tax preparation program.
Software maker Intuit's faulty software was purchased by at least 682,000 New Yorkers in 2001 and 2002. According to Spitzer, an error in Intuit's "Turbo Tax" software may have prevented some taxpayers eligible for the New York State College Tuition Credit from receiving it. The credit reduces an individual's state income tax by as much as $200.
Under the settlement, Intuit agreed to notify by mail all New York taxpayers who purchased Turbo Tax, explaining the process for them to file an amended tax return.
Intuit must also pay $15,000 in costs to the state.
Spitzer said as more and more taxpayers turn to software programs to prepare their returns, it's critical that "accuracy be maintained."