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Meta and Tax Prep Companies “Recklessly” Shared Taxpayers’ Data, According to Congressional Report

  • Federal Trade Commission Chair Lina Khan responded to a report triggered by The Markup's investigation into tax preparation companies' sharing of taxpayers' data.
  • Tax preparation companies like H&R Block and TaxAct shared taxpayers' data with Meta through the Meta Pixel tool.
  • A congressional report criticized companies for being careless with taxpayer data and violating privacy.
  • The report found that the companies were not fully aware of the status of millions of taxpayers' data.
  • Lawmakers sent the report to federal enforcement agencies for investigation and possible prosecution.
  • Some companies involved like Meta, H&R Block, and TaxSlayer did not immediately respond to requests for comment.
  • TaxAct disabled standard analytics tools and cooperated with the investigation.
  • The report urged the IRS to develop its own online tax filing system to protect taxpayer privacy.
  • The Meta Pixel, used for tracking, raised concerns about the collection of sensitive data like financial and health information.
  • The United States lacks a widely available, free government-run tax-filing option, pushing many taxpayers to use private tax prep services.

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