A security firm, Palantir, working with Intuit concluded from a preliminary examination that Intuit's systems were not breached.

In a prepared statement, Intuit CEO Brad Smith said, "We are taking this issue very seriously and from the moment it emerged it has been all-hands-on-deck." Intuit said additional security steps taken include the implementation of Multi-Factor Authentication, a tool for preventing ID theft.

Problems had been reported in 18 states and Minnesota stopped processing TurboTax returns. That state's action did not affect those returns prepared with Intuit Tax online, Lacerte and ProSeries. Intuit's suspension of transmission lasted about a day. Federal returns were unaffected by the problems. Minnesota resumed acceptance of TurboTax returns at 3 pm. CST, Saturday, February 7.

In cases reported by national news media, some TurboTax customers found when they tried to file their state returns that returns had already been filed in their names.

The troubles came as Intuit again handed arch-rival H&R Block ammunition to promote its own services. Block promptly reported its lack of problems and the security steps it takes. "We have no indication this issue exists with H&R Block online state returns. H&R Block continues to file state and federal returns as usual," the company said in a prepared statement.

It was the second major embarrassment Intuit has suffered during this season. The first came when users reacted loudly to the company's decision to remove schedules C, D, E and F from the desktop version of TurboTax Deluxe. Caught off guard, users complained after finding they would have to pay more for TurboTax Premier to get those forms.

Smith reacted by issuing an apology and released videos in which he said the company would reverse its decision next year. It offered those who had already spent money for the upgrade the chance to get their $25 back. Those who had not purchased their software can receive the Premier version for no extra charge.