TaxAct SettlementTaxAct Settlement Users of TaxAct’s online federal tax filing service from 2018 to 2022 are eligible for a settlement due to alleged data sharing violations. The settlement amount is approximately $14.95 million. Eligibility: * Used TaxAct’s online 1040 tax return product between January 1, 2018 and December 31, 2022 * Have a US zip code Settlement Details: * Estimated individual payout: $18.65 * California residents and joint tax filers may receive higher amounts * Free expert assistance for TaxAct users in 2024 Claim Process: * Submit a claim form by September 11, 2024 at the official settlement website * Proof of purchase is not required * You can opt out by September 11, 2024 Contact Information: * Settlement Administrator: Kroll Settlement Administration LLC * Email: [email protected] * Toll-free: (833) 425-9910 * Mail: PO Box 225391, New York, NY 10150-5391 Background: The lawsuit alleged that TaxAct shared user data, including names, income, and other sensitive information, with Google and Meta without consent. TaxAct has not admitted wrongdoing. Conclusion: This settlement highlights concerns about data privacy in the tax preparation industry. It is important to be aware of how companies handle your personal and financial information.
A settlement in a class action lawsuit involving the popular online tax preparation service, Tax lawis underway. This legal settlement involves users of TaxAct’s online federal tax filing service between two and six years ago.
The total settlement amount is approximately $14.95 million and eligible customers may be entitled to compensation.
Here’s what else you need to know.
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TaxAct lawsuit?
The lawsuit at the center of this settlement alleges that TaxAct shared users’ personal and financial information with outside entities, specifically Google And Meta (formerly Facebook), without obtaining the appropriate consent.
Tracking pixels were reportedly used to collect and transmit user data for advertising purposes. This included names, email addresses, income data, and other sensitive data entered during the tax filing process.
TaxAct has agreed to a settlement but has not admitted any wrongdoing.
TaxAct Class Settlement: How Much Is It?
The scheme applies to anyone who used TaxAct’s online do-it-yourself 1040 tax return product between January 1, 2018 and December 31, 2022.
- The official settlement website states that the estimated individual payout for eligible claimants in the TaxAct settlement is approximately $18.65.
- California residents and joint tax filers may be eligible for slightly higher amounts.
- Additionally, claimants who plan to use TaxAct for their 2024 tax returns will receive free expert assistance as part of the settlement.
You must meet the eligibility criteria and submit a claim form to participate. Eligibility is generally extended to those who have used TaxAct’s online service and have a US zip code during the period to which the scheme relates.
Claim forms can be submitted online via the official settlement websiteProof of purchase is not required.
Important data:
- The deadline for submitting claims is September 11, 2024.
- If you do not wish to participate in the settlement, you must do so by September 11, 2024.
- Objections to the settlement must be filed no later than August 12, 2024.
If you have any questions about the settlement, please contact the Settlement Administrator, Kroll Settlement Administration.
Email: [email protected] and toll-free: (833) 425-9910. You may also contact the administrator by mail at the following address.
Smith-Washington v. TaxAct, Inc., Attn: Kroll Settlement Administration LLC
PO Box 225391
New York, NY 10150-5391
TaxAct Legal Settlement: Conclusion
The settlement is part of a broader trend of concerns about privacy and fair advertising in the tax preparation industry. As Kiplinger reported, the Federal Trade Commission (FTC) recently filed complaints against Intuit TurboTax and H&R Block, accusing the companies of misleading consumers with advertising for their digital tax preparation products.
While individual payouts from the TaxAct settlement are likely to be small, the situation is a warning to remain vigilant about how companies use and share the data we provide for online financial services.
