Current:Home > ScamsH&R Block and other tax-prep firms shared consumer data with Meta, lawmakers say -FinanceMind
H&R Block and other tax-prep firms shared consumer data with Meta, lawmakers say
SignalHub Quantitative Think Tank Center View
Date:2025-04-10 16:06:59
H&R Block and other tax prep companies shared sensitive personal and financial data from tens of millions of customers with Meta and Google, according to a new report from a group of U.S. lawmakers.
The lawmakers, who include Sens. Elizabeth Warren, D.-Massachusetts and Bernie Sanders, I.-Vermont, said they investigated H&R Block, TaxAct and TaxSlayer after a report in The Verge last year alleged that companies were using code that funneled data including users' income and tax refund amount to Meta.
Tax-prep companies used the code, called Meta Pixel, to send personal data to both Meta and Google, and collected "far more information than was previously reported," according to a letter sent by the lawmakers to the IRS, Federal Trade Commission, Treasury Department and Justice Department that was viewed by CBS MoneyWatch. The code collected not only people's names, but also taxpayers' filing status, approximate adjusted gross income, refund amount, the names of dependents and the amount of federal tax owed, among other items, the investigation found.
Sharing such taxpayer information without their consent is a "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 lawmakers added.
The lawmakers, who also include Sens. Ron Wyden, D.-Oregon; Richard Blumenthal, D.-Connecticut; Tammy Duckworth, D-Illinois; Sheldon Whitehouse, D.-Rhode Island; and Rep. Katie Porter, D.-California, asked the federal agencies to "fully investigate this matter and prosecute any company or individuals who violated the law."
In an email to CBS MoneyWatch, H&R Block said it "takes protecting our clients' privacy very seriously, and we have taken steps to prevent the sharing of information via pixels."
Meta said its policies are clear that advertisers "should not send sensitive information about people through our Business Tools," according to a company spokesman. He added, "Doing so is against our policies, and we educate advertisers on properly setting up Business tools to prevent this from occurring. Our system is designed to filter out potentially sensitive data it is able to detect."
Google, TaxAct and TaxSlayer didn't immediately respond to requests for comment.
Competition from the IRS
The investigation comes amid a push by the IRS to develop its own free electronic tax-filing system that could compete with tax-prep programs from the likes of Intuit's TurboTax and H&R Block. The IRS plans to roll out its pilot program in early 2024.
Preparing and filing taxes is big business in the U.S., with Americans spending an average of $250 and 13 hours each filing their annual returns, the lawmakers noted. While free tax prep is offered for people who earn less than $73,000 annually, only about 4% of Americans actually use the free service, they added.
H&R Block and other tax prep companies have spent millions since the 1990s to oppose free filing systems, the report noted.
The investigation into data sharing by tax-prep companies "highlights the urgent need for the IRS to develop its own online tax filing system — to protect taxpayer privacy and provide a better alternative for taxpayers to file their returns," the lawmakers added.
- In:
- IRS
- Meta
veryGood! (558)
Related
- All That You Wanted to Know About She’s All That
- Darren Criss on why playing a robot in 'Maybe Happy Ending' makes him want to cry
- A $1 billion proposal is the latest plan to refurbish and save the iconic Houston Astrodome
- FanDuel Sports Network regional channels will be available as add-on subscription on Prime Video
- $73.5M beach replenishment project starts in January at Jersey Shore
- Chipotle unveils cilantro-scented soap, 'water' cup candles in humorous holiday gift line
- Chipotle unveils cilantro-scented soap, 'water' cup candles in humorous holiday gift line
- Chrysler recalls over 200k Jeep, Dodge vehicles over antilock-brake system: See affected models
- Average rate on 30
- Elton John Details Strict Diet in His 70s
Ranking
- The Daily Money: Spending more on holiday travel?
- Amazon Prime Video to stream Diamond Sports' regional networks
- Justine Bateman feels like she can breathe again in 'new era' after Trump win
- The results are in: Peanut the Squirrel did not have rabies, county official says
- Buckingham Palace staff under investigation for 'bar brawl'
- Kathy Bates likes 'not having breasts' after her cancer battle: 'They were like 10 pounds'
- Suspect in deadly 2023 Atlanta shooting is deemed not competent to stand trial
- Caitlin Clark's gold Nike golf shoes turn heads at The Annika LPGA pro-am
Recommendation
Scoot flight from Singapore to Wuhan turns back after 'technical issue' detected
‘COP Fatigue’: Experts Warn That Size and Spectacle of Global Climate Summit Is Hindering Progress
GM recalls 460k cars for rear wheel lock-up: Affected models include Chevrolet, GMC, Cadillac
Jason Kelce Jokes He Got “Mixed Reviews” From Kylie Kelce Over NSFW Commentary
US appeals court rejects Nasdaq’s diversity rules for company boards
Cold case arrest: Florida man being held in decades-old Massachusetts double murder
Birth control and abortion pill requests have surged since Trump won the election
Jason Statham Shares Rare Family Photos of Rosie Huntington-Whiteley and Their Kids on Vacation