Tax preparer TurboTax halts the processing of state tax returns on fraud reports

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.

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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.

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.