According to a congressional report that was released last week, three major U.S. tax preparation firms have been sharing their client’s personal data with humungous tech companies such as Meta and Google. The call for an investigation into this situation was led by Democrat Senator Elizabeth Warren.
Overview
The three tax prep firms that are facing penalties are H&R Block, TaxAct, and TaxSlayer. According to Senator Warren, these companies were “recklessly” sharing the personal and financial data of several millions of taxpayers. Warren also went on to report that this reckless data sharing, particularly with Meta, has been going on for several years.
Focusing on Meta
According to the three companies in question, they said they used a piece of code called Meta Pixel in order to track website visitors. All three companies also said that they were doing this for “at least a couple of years.” It is also noteworthy that the three companies did share this same data with Google Analytics for even longer. However, an aide of Elizabeth Warren stated that the investigation is more heavily focused on Meta. This is because Google did not use the information for its commercial purposes “as overtly” as Meta did.
Data That Was Shared
According to the congressional report, H&R Block, TaxAct, and TaxSlayer shared a plethora of personal information with Meta. This information includes names, email addresses, filing status, annual income, refund amounts, and even the amount of scholarship money some of these taxpayers’ dependents were receiving. When it comes to TaxAct in particular, they have a free filing service which is ironically made possible through a deal with the Internal Revenue Service. All taxpayers that use this free filing service through TaxAct had their information shared with these tech companies as well. “Every single taxpayer who used their websites to file their taxes could have had at least some of their data shared,” the congressional report said.
Wrap Up
All three companies have stated that they have either removed or disabled the Meta Pixel feature from their platforms. While using online filing companies may seem convenient, it is important to note that these companies do not always value the privacy of their customers. When filing a tax return, go to a company that allows you to actually speak with an accountant or advisor, cares about your privacy, and is also willing to go the extra mile to ensure you and your business are taken care of when it comes to taxes.