A group of lawmakers recently forwarded correspondence to some tax preparation companies and tech forms outlining concerns companies allegedly have been secretly transmitting individual taxpayers’ sensitive financial information.
U.S. Sens. Elizabeth Warren (D-MA) and Ron Wyden (D-OR) joined U.S. Reps. Katie Porter (D-CA), Brad Sherman (D-CA), and four colleagues in sending letters to H&R Block, TaxAct, and TaxSlayer, as well as Meta and Google.
The Markup reported major tax preparation companies had been transmitting sensitive taxpayer data to Meta through code called the Meta Pixel, detailing that the code is provided of charge to any business and records users’ browsing history -and information they enter online without their permission.
“Such unauthorized disclosures of sensitive taxpayer data would be clearly inappropriate and potentially illegal,” the legislators wrote. “The Internal Revenue Code clearly states that ‘returns and return information shall be confidential,’ with limited exceptions. These shocking reports of breaches of taxpayer privacy by tax preparation companies underscores the need for the IRS to provide its own free tax filing software.”
The lawmakers requested H&R Block, Tax Act, TaxSlayer, Meta, and Google provide insight into the nature and extent of the alleged sharing of taxpayer data no later than Jan. 3, 2023.
“American taxpayers should have the option of preparing and filing their taxes directly with the federal government instead of being forced to share private information with third parties that have a long record of abusive behavior, now potentially including turning over that data to Big Tech firms,” the legislators concluded.