3 tax prep firms shared ‘extraordinarily sensitive' taxpayer data with Google and Meta, lawmakers say

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3 tax prep firms shared ‘extraordinarily sensitive' taxpayer data with Google and Meta, lawmakers say
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The Democrats' report urges federal agencies to investigate and potentially go to court over the wealth of information that H&R Block, TaxAct and TaxSlayer shared with the social media giant.

Taxpayer data was also shared with Google, through its own tracking tools — though the firm told lawmakers that it never used the information to track users on the internet, according to the report.

The Markup, a nonprofit journalism outlet focusing on technology, initially reported on the data-sharing between tax firms and Meta in November. A TaxAct representative said the firm has engaged with Warren's office to explain its usage of the analytical tools and that protecting customers is its top priority.

And Meta said that it has been clear in its policies that advertisers “should not send sensitive information about people through our Business Tools.” This May, the FTC proposed sweeping new changes to its standing privacy order for Meta that would bar the company from using any data collected from children under 18, including via its virtual reality technologies. The new rules would also force Meta to pause new products and services until an independent assessor confirms that they comply with the FTC order.

The Democrats say their report serves as an argument for the creation of an electronic free-file system for submitting tax returns that would be run by the government, which the IRS is currently piloting.

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