3 tax prep firms shared ‘extraordinarily sensitive’ data about taxpayers with Meta, lawmakers say

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3 tax prep firms shared ‘extraordinarily sensitive’ data about taxpayers with Meta, lawmakers say
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Their report urges federal agencies to investigate and potentially go to court over the wealth of information that H&R Block, TaxAct and Tax Slayer shared with the social media giant.

In a letter to the heads of the IRS, the Justice Department, the Federal Trade Commission and the IRS watchdog, seven lawmakers say their findings “reveal a shocking breach of taxpayer privacy by tax prep companies and by Big Tech firms.”

That data came to Meta through its Pixel code, which the tax firms installed on their websites to gather information on how to improve their own marketing campaigns. In exchange, Meta was able to access the data to write targeted algorithms for its own users. The letter to federal agencies was signed by Sens. Elizabeth Warren, Ron Wyden, Richard Blumenthal, Tammy Duckworth, Bernie Sanders and Sheldon Whitehouse and Rep. Katie Porter. The lawmakers called for the agencies to “immediately open an investigation into this incident.”

TaxAct told The Markup that it takes the privacy of its customers’ data “very seriously” and “endeavors to comply with all IRS regulations.” H&R Block said it has an “ongoing commitment to privacy” and regularly evaluates its practices. TaxSlayer said that its customers’ privacy is “of utmost importance” and that it had removed the Pixel to evaluate its use.Representatives from the IRS, the DOJ, the FTC and the IRS watchdog also did not immediately respond to requests for comment.

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