States Say No to TurboTax

States are refusing to accept returns from TurboTax due to an increase in fraudulent files. The software found “an increase in suspicious filings,” according to the company, which outlined customers using stolen personal data to gain refunds from fake state tax returns. The issue does not prevent federal filings and those who have already filed state returns through the software will not be affected. So far, 18 states have expressed concern, with Minnesota being the first to reject e-files through TurboTax. In 2013, the IRS dolled out $4 billion fraudulent filings.