Question 1

Is this a class action?

Accepted Answer

Yes, we are pursuing relief on a class-wide basis. There has not been a settlement. Instead, we represent consumers whose tax return information may have been unlawfully disclosed to big tech companies. We are looking for class representatives who have used the listed tax preparers and want to help protect tax return information for themselves and all other people whose information was intercepted.

Question 2

What is this about?

Accepted Answer

A November 2022 investigation by The Markup revealed that major tax filing services such as H&R Block, TaxSlayer, Jackson Hewitt, and TurboTax have been quietly transmitting sensitive financial information about its customers to big technology companies through widely used computer code called Pixels.

A Congressional investigation and report issued in July 2023 found that the amount and type of data tax preparers shared with Big Tech was even more extensive than what the Markup discovered and confirmed that that Big Tech companies worked with tax preparers to put tracking code on the section of tax preparers’ websites where customers entered sensitive information. Although some of the tax preparers claimed that all this shared data was anonymous, “the FTC and experts have indicated that the data could easily be used to identify individuals, or to create a dossier on them that could be used for targeted advertising or other purposes.” You can read the report here: Senate Report(https://www.warren.senate.gov/imo/media/doc/Attacks%20on%20Tax%20Privacy%20Report_7.12.2023.pdf)

Question 3

Does this apply to me?

Accepted Answer

This action applies to people who completed their 2019 through 2024 tax returns using H&R Block, TaxSlayer, Jackson Hewitt, and/or Intuit TurboTax.

Question 4

What information was shared?

Accepted Answer

The data shared with Big Tech companies included full names, zip codes, phone numbers, taxpayers’ filing status, approximate adjusted gross income, approximate refund amount, names of dependents, and more according to the Senate report.

Question 5

How do I know if my information was included in the data breach? Is this for real?

Accepted Answer

It is very real.  According to the July 2023 Congressional Report, “because of the way the pixels were set up and implemented—every single taxpayer who used [affected tax preparation companies] to file their taxes could have had at least some of their data shared.”

Question 6

Why didn’t the tax preparation companies notify me about this?

Accepted Answer

Unfortunately, the tax return preparation companies are not required by law to notify you about the misuse of your personal data. However, some of the tax preparers admitted in response to a Congressional inquiry, that they “shared taxpayer data via their use of Meta Pixel and Google’s tools” and “revealed an extensive list of data shared … including transmitting information on whether taxpayers had visited pages for many revealing tax situations, such as having dependents, certain types of income (such as rental income or capital gains), and certain tax credits or deductions.”

Question 7

What are pixels and other trackers?

Accepted Answer

Pixels are snippets of website code created by Big Tech companies to track users across the internet.
Once a business installs them on a website, the pixels or similar tracking code starts tracking the actions users take on the website. This can include page views, interactions with specific elements, completion of forms, or purchases. The data is then sent to Big Tech companies without any notification.

The data collected by the pixels is used to create a profile on each user for targeted advertising campaigns. Big Tech companies can also use the data for their own advertising purposes.

Other trackers work similarly on servers that a user cannot see, or within apps or downloadable software.

Question 8

Why do I need a lawyer?

Accepted Answer

Neither the Big Tech companies nor the tax preparers are conceding liability on the potential cases against them. Some of these companies have fought to avoid liability through customer agreements that contain many hoops to jump through to bring a claim, including through the use of binding arbitration that prevents consumers from bringing a normal lawsuit.

Question 9

I’ve been using my Tax Preparer for years. Am I eligible to sign up?

Accepted Answer

Yes. Anyone who completed their tax returns using the tax preparers' websites, mobile or desktop apps, or in-office services between tax years 2019 and 2024 may sign up and see if they qualify.

Question 10

How many people may be affected?

Accepted Answer

The total number of people affected is currently unknown, but is believed to be in the millions.

Question 11

My spouse filed a joint tax return with me, am I eligible to sign up?

Accepted Answer

Yes! Your spouse may also be an eligible plaintiff. You can share this link with them and anyone else you know who may be affected: https://www.complexcounsel.com/tax-preparer-data-breach (https://www.complexcounsel.com/tax-preparer-data-breach)

Question 12

I changed my name after I filed my taxes. Which name should I use when I submit my form?

Accepted Answer

You should provide us with the name(s) you used when you filed your taxes on the form so we can match records from the Big Tech companies with your filed name.

Question 13

I want to send this information to someone else who used one of the Tax Preparers’ online services between 2018-2024. What should I do?

Accepted Answer

Please share this link with anyone you know who may be affected: https://www.complexcounsel.com/tax-preparer-data-breach (https://www.complexcounsel.com/tax-preparer-data-breach)

Question 14

I filed joint tax returns with my spouse, but my spouse recently passed away. What can I do?

Accepted Answer

You can complete a form for yourself and on behalf of your deceased spouse if you are an executor of their estate.

Question 15

Do I qualify if I used the Tax Preparers’ online services, but do not have a Facebook or Google account?

Accepted Answer

Yes. As the 2022 Markup Report explained, “[t]he information sent to [Big Tech companies] 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.

Question 16

Does it matter what state I live in?

Accepted Answer

We believe that the Big Tech companies violated federal law in disclosing taxpayer information. All U.S. taxpayers are protected by this law.

Question 17

How much could I recover?

Accepted Answer

It's too early to know for sure. The tax preparation companies and Big Tech companies may have violated the Federal Electronic Communications Privacy Act and Wiretap Act, 18 USC § 2511, which prohibits the interception or disclosure of electronic communications. Under this law, a plaintiff can recover actual damages plus any profits made by the defendant from the violation, or “the greater of $100 a day for each day of violation or $10,000.”

Unlike most data breach claims, Federal law provides for damages of up to $10,000 for each unauthorized use or disclosure of taxpayer information. It is our position that the Big Tech companies may be liable for up to $10,000 for each act of unauthorized inspection or disclosure of a return or return information. However, this is only an estimate, not a guaranteed outcome.

Question 18

What will this cost me out of pocket?

Accepted Answer

Nothing. We work on a contingency fee, which means that we don’t get paid unless we win money for you. And we only get paid a percentage of the money we win for you and other affected taxpayers after the court determines the value of our work. We also advance all the expenses (filing fees, expert review fees, and things like that), so that they don’t come out of your pocket.

Question 19

How long will this take?

Accepted Answer

We are in the early stages of this case and timelines can vary between months and years. We will know more soon. It is simply too early to make any concrete timeline determination.

Question 20

Should I use the Tax Preparation companies to complete my tax return this year?

Accepted Answer

We are not in a position to advise you about using any particular tax preparation company because other companies could have the same or similar data sharing issues.

Question 21

Who are the lawyers working on this case?

Accepted Answer

The lawyers in charge of this litigation are:
Aaron Zigler https://www.ziglerlawgroup.com/lawyers/aaron-zigler(https://www.ziglerlawgroup.com/lawyers/aaron-zigler)
Kevin McCormack https://www.ziglerlawgorup.com/lawyers/kevin-mccormack(https://www.ziglerlawgorup.com/lawyers/kevin-mccormack)

TAX PREPARER DATA BREACH

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