Wednesday, November 23, 2022

Tax filing websites have been sending users’ financial information to Facebook

Taxpayers’ data is being gathered via the Meta Pixel Google etc —a tiny piece of code that’s ubiquitous across the web.


It collects data to fuel Facebook’s advertising machinery, regardless of whether or not you have a Facebook account.


We’re not talking just names and email addresses being sent to Facebook and other advertisers …

The personal information 

 found included: 

• Income

• Filing Status

• Refund amount

• Health savings account usage

• Dependents’ college scholarship amount


Tax prep software sent back personal consumer data to Meta and Google, report says


Tax prep websites have been sending sensitive financial data to Facebook


According to The Markup, major tax filing services such as H&R Block, TaxAct, and TaxSlayer have quietly transmitted sensitive financial information to Facebook.

Users’ income, filing status, refund amount, and dependents’ college scholarship amounts are often included in the data, sent through a code known as the Meta Pixel.

In addition to being gathered, regardless of whether the individual using the tax filing service has a Facebook account, the information sent to Facebook is operated by Facebook to power its advertising algorithms.

According to The Markup, some of the most widely used e-filing services use pixels, which process about 150 million individual tax returns electronically each year.

For example, the popular tax-filing service TaxAct asks users to provide personal information to calculate their returns, such as how much money they make and what investments they have. According to a review by The Markup, a pixel on TaxAct’s website sent some of that data to Facebook, including users’ filing status, their adjusted gross income, and their refund amount.

Refunds were rounded to the nearest hundred and income to the nearest thousand. In addition, the pixel sent obfuscated – but generally reversible – information about dependents.

A similar amount of financial data, but not names, are also being sent to Google through TaxAct’s website, which claims to have about 3 million users.


Meta's Pixel is once again harvesting private data without users' knowledge


Tax filing websites have been sending users’ financial information to Facebook

The Verge co-published with The Markup: “Major tax filing services such as H&R Block, TaxAct, and TaxSlayer have been quietly transmitting sensitive financial information to Facebook when Americans file their taxes online, The Markup has learned. The data, sent through widely used code called the Meta Pixel, includes not only information like names and email addresses but often even more detailed information, including data on users’ income, filing status, refund amounts, and dependents’ college scholarship amounts. 

The information sent to Facebook can be used by the company to power its advertising algorithms and is gathered regardless of whether the person using the tax filing service has an account on Facebook or other platforms operated by its owner Meta.  Each year, the Internal Revenue Service processes about 150 millionindividual returns filed electronically, and some of the most widely used e-filing services employ the pixel, The Markupfound.  

When users sign up to file their taxes with the popular service TaxAct, for example, they’re asked to provide personal information to calculate their returns, including how much money they make and their investments. A pixel on TaxAct’s website then sent some of that data to Facebook, including users’ filing status, their adjusted gross income, and the amount of their refund, according to a review by The Markup. Income was rounded to the nearest thousand and refunds to the nearest hundred. 

The pixel also sent the names of dependents in an obfuscated — but generally reversible — format. TaxAct, which says it has about 3 million “consumer and professional users” also uses Google’s analytics tool on its website, and The Markupfound similar financial data, but not names, being sent to Google through its tool.”



See also ProPublica: Inside TurboTax’s 20-Year Fight to Stop Americans From Filing Their Taxes for Free Using lobbying, the revolving door and “dark pattern” customer tricks, Intuit fended off the government’s attempts to make tax filing free and easy, and created its multi-billion-dollar franchise.