TaxAct Settles Connecticut Case Over Unauthorized Data Sharing

The Texas-based tax preparation company, TaxAct, has agreed to settle a case in Connecticut for $275,000. The state's Attorney General, William Tong, announced the settlement due to the company allegedly sharing taxpayers' information with Meta Platforms and Google without proper authorization.

As part of the agreement, TaxAct must review its contracts with third-party tracking companies to ensure they comply with data-sharing regulations. This includes reviewing both new and existing contracts to guarantee that taxpayer data is not shared without consent.

The settlement comes after an investigation by the Connecticut Attorney General's office found that TaxAct had failed to properly disclose how it was sharing taxpayers' information with Meta Platforms and Google.