TurboTax stops processing state tax returns on fraud reports

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Intuit Inc.'s TurboTax logos are displayed on a computer monitor in Washington, D.C., U.S., on Monday, Feb. 13, 2012. The U.S. income tax filing deadline for 2011 taxes is April 17, 2012. Photographer: Andrew Harrer/Bloomberg via Getty Images

NEW YORK (AP) — TurboTax says it has temporarily stopped processing state tax returns due to an increase in fraudulent fillings.

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

The company is working with security company Palantir 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.

So far Minnesota is the only state to announce that it has stopped accepting tax returns submitted via Turbotax The Wall Street Journal reported. According to their report, Minnesota is still accepting returns filed using Intuit professional-preparer products (Lacerte, Intuit Tax Online, and ProSeries).

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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