Some congressional Democrats say three large tax preparation firms sent “extraordinarily sensitive” information on tens of millions of taxpayers to Facebook parent company Meta over at least two years.
and Sheldon Whitehouse and Rep. Katie Porter. The lawmakers called for the agencies to “immediately open an investigation into this incident.”
They ask the agencies to investigate “and prosecute any company or individuals who violated the law," saying it could result in billions of dollars in criminal liability to the firms.on the data-sharing between tax firms and Meta in November. TaxAct told The Markup then that it takes the privacy of its customers’ data “very seriously” and ”endeavors to comply with all IRS regulations.
H&R Block said on Wednesday that it takes protecting client privacy very seriously and has taken steps to prevent the sharing of information through the Pixel coding. And Meta said that it has been clear in its policies that advertisers “should not send sensitive information about people through our Business Tools.”“Doing so is against our policies and we educate advertisers on properly setting up Business tools to prevent this from occurring,” the company said in an emailed statement. “Our system is designed to filter out potentially sensitive data it is able to detect.
Representatives from the IRS, the DOJ, the FTC and the IRS watchdog also did not immediately respond to requests for comment.an electronic free-file systemThe IRS plans to launch a pilot program for the 2024 filing season to test a “direct file” system and help the federal government decide whether to move forward with potentially implementing it in the future.laying out taxpayer interest in direct file, how the system could work, its potential cost, operational challenges and more.
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