Democrats Press For Criminal Charges Against Tax Prep Firms Over Data Sharing (theverge.com) 17
Democratic senators Elizabeth Warren, Ron Wyden, Richard Blumenthal and Representative Katie Porter are demanding the Justice Department prosecute tax preparation companies for allegedly sharing sensitive taxpayer data with Meta and Google through tracking pixels. The lawmakers' call follows a Treasury Inspector General audit confirming their earlier investigation into TaxSlayer, H&R Block, and Tax Act. The audit found multiple companies failed to properly obtain consent before sharing tax return information via advertising tools. Violations could result in one-year prison terms and $1,000 fines per incident, potentially reaching billions in penalties given the scale of affected users.
In a letter shared with The Verge, the lawmakers said: "Accountability for these tax preparation companies -- who disclosed millions of taxpayers' tax return data, meaning they could potentially face billions of dollars in criminal liability -- is essential for protecting the rule of law and the privacy of taxpayers," the letter reads. "We urge you to follow the facts and the conclusions of TIGTA and the IRS and to take appropriate action against any companies or individuals that have violated the law."
In a letter shared with The Verge, the lawmakers said: "Accountability for these tax preparation companies -- who disclosed millions of taxpayers' tax return data, meaning they could potentially face billions of dollars in criminal liability -- is essential for protecting the rule of law and the privacy of taxpayers," the letter reads. "We urge you to follow the facts and the conclusions of TIGTA and the IRS and to take appropriate action against any companies or individuals that have violated the law."
Re: (Score:3)
Well sure. When you're an 80 year old man whose cognitive decline is on full display every day, the last thing you want to do is release your medical records.
Re: (Score:2)
I see what is being done there...
Re:Since it's Elizabeth Warren (Score:4, Interesting)
The IRS finally got some money in the IRA to develop their own web based tax software. It had a limited roll out last year and was generally well received. Expect a wider roll out in the future.
The tax prep companies fought this tooth and nail for years with bribes to politicians but it was finally passed as part of Biden's IRA.
IRS Funding has been hobbled for years because the Republicans don't want their high earning tax cheats to get audited. The IRA also provided more money for audit and customer service.
Re: (Score:2)
The problem with iRS enforcement is that they'll start harassing not billionaires, but people in the top 25% where the real money is. That includes many posters here, I suspect.
In my case, I don't have a lot of flexibility in my income and such and harassing me is just harassment. Not much money to be drawn from a stone. I doubt i'm much of an outlier. I've been through the rigamarole before and it was a lot of document production and such, with no changes. Just making my life worse with no real change
Unclear... (Score:2)
Re: Unclear... (Score:3, Insightful)
Tracking pixels are far more than just a literal pixel at this point, basically JS that can send back whatever it wants including form data. How they are used in this case I don't know.
Re:Unclear... (Score:5, Insightful)
TFA is all about tracking pixels, but at the same time implies that actual, financial information was shared. These two things are not the same.
Specific financial info no, but even if the pixel sends back just the URL that can tell you what sections of the website were being used, which can communicate financial information.
This specific infraction is probably pretty low risk, though if an ML model ingests it you could start making inferences. For instance, you start looking at bankruptcy sections of the tax website and you start seeing ads for bankruptcy attorneys.
And even if this breach is harmless there's benefit in sending a message that the companies need to take privacy more seriously.
Tax Information is Confidential (Score:3)
Re: (Score:2)
"The audit found multiple companies failed to properly obtain consent before sharing tax return information via advertising tools. "
Doesn't seem consensual, not even disclosed.
I'm fiscally conservative and I approve this 100% (Score:2)