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.