Intuit's Turbo Tax hits snafu amid fradulent state-level tax returns

Intuit has already launched an investigation, working both state agencies and third-party security expert Palantir.

Tax season is well underway, but some citizens are having bigger problems than just getting their paperwork together.

Turbo Tax, the popular do-it-yourself tax preparation software, has put a temporary halt on e-filing state tax returns following the discovery of "suspicious filings and attempts by criminals to use stolen identity information to file fraudulent state tax returns and claim tax refunds."

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Limited only to states requiring residents to file state-level tax returns to begin with, the temporary pause does not affect federal tax returns.

Intuit, the financial software company and owner of Turbo Tax, announced on Friday that it has already launched an investigation, working both state agencies and third-party security expert Palantir.

Intuit has already asserted that it didn't find any evidence of a security breach on its own systems, suggesting the fraudulent returns were generated by other sources during the tax preparation process.

The Mountain View, Calif.-based company did not specify when it expects the block on state filings to be lifted.

Intuit instructed customers who have already filed state tax returns using Intuit software during this period will have their returns transmitted as soon as possible, and they don't need to take any further action.

However, for any Turbo Tax users who think their personal data has been compromised, Intuit has set up a dedicated toll-free hotline (1-800-944-8596) with direct access to identity protection services and assistance.

Intuit has also pledged free identity protection services, credit monitoring, and access to all versions of its software as well as help from Intuit's credentialed tax experts who will prepare taxes for affected customers, also at no expense.