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TaxAct to pay $275,000 in Connecticut settlement over sharing taxpayer data with Meta and Google

Connecticut Attorney General William Tong said an investigation found the online tax preparation company disclosed customers' financial details to third-party trackers between 2018 and 2022. The company cooperated and is now under new ownership, his office said.

Connecticut Attorney General William Tong announced a $275,000 settlement with the online tax preparation company TaxAct on Aug. 19, over what his office described as the improper release of sensitive taxpayer data to Meta and Google.

An investigation by the Office of the Attorney General found that between January 2018 and December 2022, the Texas-based company used third-party tracking technologies through Meta and Google for internal data analytics and marketing, according to the release.

During that period, prosecutors in the attorney general's office said, TaxAct disclosed detailed financial information about its customers, including rounded adjusted gross income, rounded tax refunds or taxes owed, and certain types of income and deductions, such as the number of dependents and whether taxpayers made charitable contributions or had investment income or mortgage or student loan interest.

The office said TaxAct's contract with Meta placed no limit on Meta's ability to use the data for its own purposes or to share it with other third parties, and that customers were not told before their information was shared. The company's privacy notices at the time promised to safeguard consumer privacy and to bar third parties from sharing TaxAct data, according to the release.

Beyond the payment to the state, the settlement requires new compliance terms governing third-party tracking, including a review committee, written policies for approving new tracking technologies, documentation of data points collected, a system that regularly scans the company's website, and two independent third-party audits, the office said.

TaxAct, now under new ownership, cooperated with the investigation, according to the attorney general's office. The office said the company entered a $14.5 million class-action settlement in December 2024 providing relief to affected taxpayers.

This brief was drafted by AI from a public agency press release and published by The New England Signal. Why we use AI for stories like this one.

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