Senator Elizabeth Warren has written to Intuit, the makers of the TurboTax software program, accusing them of offering products that “scam American taxpayers into paying for services that should be free.”
The letter comes as the Internal Revenue Service (IRS) investigates crypto taxes as tax-filing season gets underway.
Senator Warren called on the company’s CEO, Sasan K. Goodarzi, claiming that the company’s “ongoing pattern of hiring former regulators to protect Turbotax products” equates to a scam.
She also pointed to a Federal Trade Commission (FTC) complaint that said the company was using deceptive ads for bogus tax-exempt preparation products. A former FTC commissioner, John Leibovitz, has also served as outside counsel for Intuit.
Warren raised questions on the appointment of former government employees
As a result, Senator Warren asked questions about how Intuit has used former government officials to “defend and perpetuate its unethical and potentially illegal practices that cost American taxpayers billions of dollars.”
Senator Warren has also been in the news regarding bitcoin and the cryptocurrency market. Senator Ted Cruz criticized Warren, along with Canadian Prime Minister Justin Trudeau and the country of China, for opposing bitcoin.
Senator Cruz said he was optimistic on bitcoin and crypto and criticized efforts to control the market.
The government is now eager to ensure tax compliance as market adoption grows and crypto goes mainstream. Countries like India have imposed heavy tax on crypto.
IRS Begins Targeting Crypto Investors
And the US IRS is paying more attention to cryptocurrencies and NFTs this time around. It is mandatory that individuals report the acquisition and sale of assets on the personal return.
Crypto trading and the proliferation of apps like Robinhood have made it very easy for retail investors to get involved. As a result, investments are increasing both in terms of value and volume, and these investors have less experience in potential tax liabilities.