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TurboTax Temporarily Stops Processing State Tax Returns

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 (Casey Serin/Flickr)

TurboTax says it has temporarily stopped processing state tax returns due to an increase in fraudulent filings.

Intuit Inc., the Mountain View-based company behind popular tax preparation software TurboTax, says state agencies have reported a rise in filings that are using stolen personal information.

The company is working with security company Palantir, based in Palo Alto, to investigate the problem. So far, Intuit says there was no security breach of its systems. Instead, it believes personal information was taken elsewhere and used to file returns on TurboTax.

Intuit says state tax returns already filed since Thursday will be transmitted as soon as possible. Users can still submit their federal income tax returns.

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