Democrats Press For Criminal Charges Against Tax Prep Firms Over Data Sharing

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.'

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