More than 100,000 lower-income Tennessee residents who paid for online-tax prep services advertised as being free may be eligible for payments, as part of a new nationwide settlement with Inuit, the owner of TurboTax.
Samantha Fisher, communications director for the Tennessee Attorney General's Office, said people who used TurboTax for tax years 2006 through 2018 may be eligible for payments of around $30 for each year they paid for services, but would have qualified for the free edition.
"Inuit has the eligible consumer contact information already," Fisher pointed out. "So, you should not have to do anything. You should end up being contacted and sent a payment, sent a check in the mail."
Inuit came under fire after investigative reporting by ProPublica alleged the company was using deceptive tactics to steer low-income people toward its commercial products and away from federally-supported free tax services.
Attorneys General in every state and the District of Columbia have signed on to the $141 million agreement. As part of the settlement, Intuit admitted no wrongdoing, according to a statement on the company's website.
Fisher explained Intuit offered two free versions of TurboTax. One was through a partnership with the Internal Revenue Service (IRS), which allowed taxpayers earning less than $34,000 a year, and members of the military, to file their income tax returns free of charge.
"Then they have this other commercial product called TurboTax Free Edition," Fisher noted. "And it was confusing for people filing their taxes about which one was truly free."
Fisher added some settlement money will be used to set up additional resources for consumers.
"As we work through this part of the process, there'll be a website that will have more information for consumers," Fisher emphasized. "Especially, for instance, if you've moved since the years where this applied."
Around 195 million tax returns and other forms were filed electronically in 2020, according to the IRS.
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Seven in 10 Americans view inflation as the most pressing issue facing the nation right now, and in Maine, a new report seeks to explore the causes, and what can be done to bring costs down.
James Myall, economic policy analyst at the Maine Center for Economic Policy and the report's co-author, said a variety of factors have come into play. He explained it is partly about supply and demand, and how they have shifted throughout the pandemic, creating bottlenecks. He noted the Russian invasion of Ukraine also plays a role, especially in food and energy costs.
Myall contended one driver of inflation Maine lawmakers could do something about is the issue of corporate consolidation.
"It's one of the things that lawmakers in Augusta can actually address," Myall asserted. "They can't do very much to address sort of some of these supply chain issues. But there are things they can do to limit the power of corporations to be able to set prices beyond rising costs."
The report showed prices for food, energy and other basic goods have increased as much as 16% in the last year, and corporate profits accounted for more than half of each dollar increase in prices. In the 40 years prior, corporate profits made up about 11% of price hikes.
Myall added wage increases have made a difference for some families in their ability to handle inflation, especially those in the restaurant and hotel industries in the face of worker shortages. But he pointed out wages have not kept pace with inflation, so they are not major drivers of it now.
"On average, we're seeing that wages have not increased as fast as inflation or have not kept pace," Myall stressed. "One of the things that's made it particularly tough for a lot of workers is that, even where folks have got pay raises, those have not been as much as the prices have been rising."
Myall emphasized prices have increased the most in the sectors where corporations have the most power. For instance, four firms control more than half of the meat-processing industry, and meat prices have skyrocketed.
The report includes recommendations for lawmakers, from new approaches to antitrust laws and addressing price gouging, to implementing a windfall tax and robust safety-net programs.
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A new study shows that almost daily leaks along America's 310,000-mile network of natural gas pipelines are causing death, injury and large-scale property damage.
The report from the Arizona PIRG Education Fund finds over the past decade, pipeline incidents serious enough to require reporting occurred every 40 hours.
Diane Brown - executive director with Arizona PIRG - said the report found between 2010 and 2021, 2,600 explosions killed 122 people, seriously injured 600 and cost Americans more than $4 billion.
"Leaks can occur anywhere," said Brown, "from the transport of gas from the well, through the gathering and transmission pipelines and the distribution lines that carry gas to homes and businesses."
The report - published this week in conjunction with the nonprofit Frontier Group - also found that pipeline leaks in Arizona and elsewhere released 26 billion cubic feet of methane, a greenhouse-gas pollutant linked to climate change.
Brown added that the serious pipeline incidents addressed in the report likely represent only some of the leaks experienced in producing, transporting and burning gas.
"Federally reported gas leaks represent just a fraction of the total," said Brown. "Not all serious gas explosions that have caused death or injury are included in the data if they did not occur in the pipeline system."
The report calls for the U.S. to stop relying so heavily on methane for home heating and cooking, as well as electricity generation. Brown said Arizona regulators have already started down that road.
"The Arizona Corporation Commission is starting to look at some of the risk posed by gas," said Brown. "The commission has brought Southwest Gas before them to discuss recent incidents that have caused Arizonans harm."
In addition to calling for tougher regulations, Arizona PIRG is advocating for better pipeline infrastructure, with improved gas-leak detection systems.
The study, along with gas safety tips for consumers, is online at 'ArizonaPIRGEdFund.org.'
Disclosure: Arizona PIRG Education Fund contributes to our fund for reporting on Budget Policy and Priorities, Consumer Issues, Energy Policy, Urban Planning/Transportation. If you would like to help support news in the public interest,
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There's been little change in the homeownership rate for Black families in 50 years, so some lenders are rethinking their practices to make buying a home more a reality than a dream.
Research shows a 20%-30% gap between Black and white homeownership rates has persisted for more than 100 years, despite increases in Black homeownership in the mid-1900s. Among the many causes today include credit scores averaging around 649 for 60% of African Americans.
Jonathan Leysath, Jacksonville branch manager for Self-Help Credit Union, said they have adjusted their mortgage products to help boost equity in the lending process and be more lenient with buyers with credit challenges.
"The Equity Boost product can go all the way down to a 580 credit score with only a minimum borrower investment as low as only 1%," Leysath explained. "As opposed to like the FHA, which is 3.5%."
Leysath argued flexibility is important because many factors continue to block economic progress for Black individuals. They include the pandemic's negative economic effects and the burden of heavy student debt, which disproportionately affects people of color.
Another possible solution to building equity is for more financial institutions to provide similar programs to help people access more resources.
Crystal German, executive vice president of communications, development, policy and impact for Self-Help Credit Union, said finances often drive talks of disparities and wealth. She pointed out their goal is to create innovative and holistic programs to help people of color develop wealth through homeownership.
"I mean, this is about having a freedom," German emphasized. "And it may not be a physical freedom, but it is a financial freedom that allows people to live their best lives."
The Fair Housing Act passed in 1968, making it illegal for anyone to be discriminated against when renting or buying a home. Before the civil-rights legislation, many Black families were locked out of the opportunity to create generational wealth by purchasing a home and passing it down to their children.
Disclosure: Self-Help Credit Union contributes to our fund for reporting on Consumer Issues, Environment, Health Issues, and Social Justice. If you would like to help support news in the public interest,
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