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SettlementMedium Risk

Connecticut AG Settles with TaxAct Over Improper Sharing of Taxpayer Data with Meta and Google

TaxActAugust 19, 2026Connecticut Attorney General

Penalty Amount

$275,000

Summary

Connecticut Attorney General William Tong announced a $275,000 settlement with TaxAct, an online tax preparation company, over allegations that between January 2018 and December 2022, TaxAct improperly disclosed detailed customer financial information to Meta and Google through third-party tracking technologies without notifying taxpayers. The settlement requires TaxAct to pay $275,000 and implement new third-party tracking compliance measures, including a review committee, written policies, a tag monitoring system, and two independent third-party audits.

Remedy

TaxAct must pay $275,000 to the state of Connecticut. The settlement also requires TaxAct to create a review committee and written policies to govern third-party tracking technologies, maintain data documentation of tracked data points, implement a tag monitoring system to scan the website, and obtain two independent third-party audits of its tracking compliance program.

Monetary PenaltyCompliance ProgramAudit Requirement

Contract Impact

In-house legal teams should review vendor agreements with marketing, analytics, and advertising technology providers (such as Meta and Google) to ensure data processing agreements contain strict purpose limitations prohibiting use of customer data for the vendor's own purposes. Privacy policies and notices should be cross-referenced against actual data sharing practices, and contracts should include audit rights, tag management governance, and compliance certification obligations. Tax preparation and other financial services companies should also review their website terms, cookie consent mechanisms, and data retention policies to ensure they align with stated privacy commitments and applicable state law.

Contract Search Terms

third-party trackingpixelMetaGoogle Analyticsdata sharingprivacy noticetax return informationadvertisingdata analyticsmarketing

Violation Types

Entity Details

Entity

TaxAct

Industry

Financial Services

Official Sources

Source Evidence

Entity Name
"Texas-based online tax preparation company TaxAct"
Fine Amount
"$275,000 settlement"
Violation Types
"TaxAct improperly disclosed to Meta and Google detailed financial information for its customers"
Notice Failure
"TaxAct did not inform taxpayers before sharing their information"
Remedy Types
"the settlement requires strong new third-party tracking compliance terms"
Audit Requirement
"the settlement requires that TaxAct obtain two independent third-party audits of its third-party tracking compliance program"

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