October 22, 2024 at 06:37PM
A group of Democratic lawmakers has urged the US Department of Justice to prosecute tax preparation firms for illegally sharing taxpayer data with Meta and Google. They cite a Treasury Department investigation confirming these violations, which may lead to criminal penalties for the companies involved. Legal action status remains uncertain.
### Meeting Takeaways:
1. **Legislative Action**: A letter from Democratic lawmakers, including Senators Elizabeth Warren, Ron Wyden, Richard Blumenthal, and Representative Katie Porter, has been sent to the US Department of Justice (DOJ) requesting the prosecution of tax preparation companies for unauthorized sharing of customer data with Meta and Google.
2. **Breach of Privacy**: The lawmakers emphasize that the sharing of sensitive taxpayer information violated privacy laws, as confirmed by investigations from the Treasury Department and TIGTA (Treasury Inspector General for Tax Administration).
3. **Specific Allegations**: The letter claims that tax preparation companies shared various personal and financial details, including income, tax refund amounts, filing status, and deductions, without proper consent.
4. **TIGTA Findings**: A report from TIGTA echoed prior allegations from a 2023 Senate report, suggesting that companies such as TaxSlayer, H&R Block, TaxAct, and Ramsey Solutions may have shared data with Google and Meta.
5. **Tracking Technology**: The unauthorized disclosures were reportedly facilitated through tracking pixels, which collect data on user interactions. While data collection isn’t inherently illegal with proper disclosures, TIGTA found these companies failed to provide clear consent statements about data usage and sharing.
6. **Legal Consequences**: The lawmakers highlighted that improper disclosures could result in substantial penalties, including $1,000 fines and potential imprisonment for violations, leading to billions of dollars in liability for the implicated firms.
7. **Call to Action**: The lawmakers reiterated the need for accountability and legal action to protect taxpayer privacy and uphold the rule of law, indicating that only the DOJ can enforce the relevant criminal statutes.
8. **Response from DOJ**: The DOJ acknowledged receipt of the letter but did not comment further, leaving the potential for legal action uncertain.