Major tax filing services have been found using a simple piece of code called Meta Pixel, which covertly sends sensitive financial information to Facebook, according to The Markup. The tax filing services include TaxSlayer, TaxAct, and H&R Block.
The information sent to Facebook includes name, email, income, college scholarship information, filing status, and refund amounts. Facebook then uses the information to โimprove its advertising algorithms.โ
The information is sent whether or not someone has a Facebook account.
According to The Markup, TaxAct asks for personal information to calculate a taxpayerโs returns. The information includes a taxpayerโs income and their investments. Metaโs Pixel code on the TaxAct website sends some of that information, including filing status, refunds, and gross income, to Facebook. The pixel code also sends dependentsโ names in an obfuscated form, which, according to The Markup, can be reversed to reveal the true identity.
TaxAct also sends anonymized taxpayersโ data to Google, through the analytics tool.
TaxSlayer, which completed the returns of 10 million taxpayers in 2021, sent Facebook taxpayersโ names and the names of dependents. Facebook uses that data for its โadvanced matchingโ system thatโs designed to link internet usersโ information to Facebook accounts.
The pixel code on H&R Blockโs website collects information on a taxpayerโs expense, usage of health savings accounts, and dependentsโ college tuition grants.
Speaking to The Markup, tax filing service Ramsey Solutions said that it โimplemented the Meta Pixel to deliver a more personalized customer experience,โ but they โdid NOT know and were never notified that personal tax information was being collected by Facebook from the Pixel.โ
โAs soon as we found out, we immediately informed TaxSlayer to deactivate the Pixel from Ramsey SmartTax.โ
TurboTax, owned by Intuit, uses Meta Pixel. However, it did not send personal financial information, only names and the last time a device logged in. Thatโs because it does not use Meta Pixel past the sign in page.