TaxAct Reaches $23 Million Taxpayer Data-Sharing Settlement

Online tax preparation company TaxAct Inc. has agreed to pay upward of $23 million to settle claims it violated privacy and tax laws by distributing confidential financial data to Meta Platforms Inc., Alphabet Inc.'s Google, and other third parties without taxpayers’ consent.

Claimaints would have access to a cash pool of nearly $14.9 million under a proposed settlement agreement filed Monday in the US District Court for the Northern District of California. Those who file their taxes through TaxAct again in 2024 also would have complimentary access to a live tax expert for help if Judge Vince Chhabria approves ...