A group of lawmakers have detailed a recently released report and correspondence to several government agencies regarding potentially illegal sharing of taxpayers’ information with Meta by online tax preparation companies.
U.S. Sens. Elizabeth Warren (D-MA), Ron Wyden (D-OR), Richard Blumenthal (D-CT), Tammy Duckworth (D-IL), Bernie Sanders (I-VT), and Sheldon Whitehouse (D-RI) joined U.S. Rep. Katie Porter (D-CA) to share thoughts on Attacks on Tax Privacy: How the Tax Prep Industry Enabled Meta to Harvest Millions of Taxpayers’ Sensitive Data.
The 54-page report stems from a seven-month long investigation exploring extensive and potentially illegal sharing of taxpayers’ sensitive personal and financial information with Meta by the online tax preparation companies.
The lawmakers expressed concerns to the Internal Revenue Service (IRS), the Treasury Inspector General for Tax Administration, the Federal Trade Commission and the Department of Justice in the form of letters, highlighting findings and encouraging the agencies to fully investigate the matter and prosecute any company or individuals who violated the law.
“The findings of this report reveal a shocking breach of taxpayer privacy by tax prep companies and by Big Tech firms that appeared to violate taxpayers’ rights and may have violated taxpayer privacy law,” the legislators wrote.
According to the lawmakers, the report allegedly determined tax preparation companies shared millions of taxpayers’ data with Meta, Google and other Big Tech firms; the report alleges tax prep companies and Big Tech firms were reckless about their data sharing practices and their treatment of sensitive taxpayer data; and alleged tax prep companies may have violated taxpayer privacy laws by sharing taxpayer data with Big Tech firms.