Congressional report reveals tax prep firms shared sensitive customer data with Big Tech for years.
Major Tax Preparation Companies Shared Private Financial Information with Big Tech: Congressional Report
According to a new report from several congressional Democrats, three major tax preparation companies, H&R Block, TaxAct, and TaxSlayer, shared private financial information with Meta and Google when filing taxes online.
The report revealed that Meta was aggressive in using the obtained information to create targeted advertising for users. The shared data could include income, refund amounts, college scholarship amounts, and the use of health savings accounts.
David Vladeck, a law professor at Georgetown University and former consumer protection chief at the Federal Trade Commission, described the situation as a “five-alarm fire” and compared it to a significant privacy breach.
The report also highlighted that the data-sharing technology had been in place for many years, potentially up to a decade.
Lawmakers Call for Prosecution
In response to the report, lawmakers sent a letter to the Internal Revenue Service, Department of Justice, Federal Trade Commission, and the Department of the Treasury agency that serves as the IRS watchdog. The letter urged these agencies to fully investigate the matter and prosecute any companies or individuals who violated the law.
The letter emphasized that the tax prep companies were careless with taxpayer data and installed Meta and Google tools on their websites without fully understanding the extent of data sharing.
Public Opinion Poll
The findings of the report were described as a shocking breach of taxpayer privacy by tax prep companies and Big Tech firms. The letter was signed by several Democratic senators and representatives who called for a thorough investigation into the matter.
Representatives from TaxSlayer and H&R Block responded to the report, with TaxSlayer stating that it contained false or misleading statements. H&R Block mentioned that they have taken action to prevent data sharing.
Meta, on the other hand, stated that advertisers should not send sensitive information through their Business Tools and that they educate advertisers on proper setup to prevent such occurrences.
Source: The Western Journal
" Conservative News Daily does not always share or support the views and opinions expressed here; they are just those of the writer."
*As an Amazon Associate I earn from qualifying purchases
