Connecticut Attorney General Settles with TaxAct Over Sharing Taxpayer Data
Connecticut Attorney General William Tong reached a $275,000 settlement with TaxAct over allegations the company shared taxpayer data with advertising partners through third-party tracking tools embedded on its website. The conduct allegedly took place between January 2018 and December 2022.
Why this matters: People who used TaxAct were not sharing their tax information with advertisers. They were filing taxes. That data includes income, debts, dependents, and financial details most people consider deeply private. TaxAct apparently handed pieces of it to ad tech companies anyway, through tracking code quietly running in the background. A $275,000 settlement is not a serious deterrent for a company that spent years doing this. The more useful outcome is the signal to other tax prep platforms that state attorneys general are watching this specific behavior.
Who should care: Lawyers · Privacy officers · Compliance · Cybersecurity
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