TaxAct privacy violations $14.95M class action settlement

Consumers who prepared taxes on TaxAct.com could receive payments from a $14.95 million TaxAct settlement resolving claims of privacy violations by the tax website.

The settlement benefits individuals with a United States postal code who used a TaxAct online do-it-yourself consumer Form 1040 tax filing product and filed a tax return using the product between Jan. 1, 2018, and Dec. 31, 2022.

The settlement also benefits a joint filing class of individuals with a United States postal code whose spouse used a TaxAct online do-it-yourself consumer Form 1040 tax filing product and filed a tax return using the product between Jan. 1, 2018, and Dec. 31, 2022.

The settlement includes two California subclasses of members of either the nationwide class or the nationwide married filed jointly class with California postal addresses.

According to the class action lawsuit, TaxAct violated federal and California state privacy laws by sharing user information with third parties, such as Meta and Google. Plaintiffs in the case argue TaxAct shared the sensitive personal and financial information they entered while filing their taxes.

TaxAct is an online tax preparation service.

TaxAct hasn’t admitted any wrongdoing but agreed to pay $14.95 million to resolve the privacy class action lawsuit.

Under the terms of the TaxAct settlement, class members can receive a cash payment of around $18.65. Consumers who used TaxAct products in California and those who filed jointly may receive larger payments.

In addition to receiving a cash payment, claimants who prepare their 2024 tax return using a TaxAct product will receive complimentary Xpert Assist.

The deadline for exclusion is Sept. 11, 2024. The deadline for objection is Aug. 12, 2024.

The final approval hearing for the settlement is scheduled for Nov. 21, 2024.

To receive a TaxAct settlement payment, class members must submit a valid claim form by Sept. 11, 2024.

Who’s Eligible

Nationwide class: Individuals with a United States postal code who used a TaxAct online do-it-yourself consumer Form 1040 tax filing product and filed a tax return using the product between Jan. 1, 2018, and Dec. 31, 2022.

Married filed jointly class: Individuals with a United States postal code whose spouse used a TaxAct online do-it-yourself consumer Form 1040 tax filing product and filed a tax return using the product between Jan. 1, 2018, and Dec. 31, 2022.

California subclass: Members of either the nationwide class or the nationwide married filed jointly class with California postal addresses.

Potential Award

$18.65

Proof of Purchase

N/A

Claim Form

NOTE: If you do not qualify for this settlement do NOT file a claim.

Remember: you are submitting your claim under penalty of perjury. You are also harming other eligible Class Members by submitting a fraudulent claim. If you’re unsure if you qualify, please read the FAQ section of the Settlement Administrator’s website to ensure you meet all standards (Top Class Actions is not a Settlement Administrator). If you don’t qualify for this settlement, check out our database of other open class action settlements you may be eligible for.

Claim Form Deadline

09/11/2024

Case Name

Smith-Washington, et al. v. TaxAct Inc.,Case No. 3:23-cv-00830-VC, in the U.S. District Court for the Northern District of California

Final Hearing

11/21/2024

Settlement Website

www.TaxActClassSettlement.com

Claims Administrator

Smith-Washington v. TaxAct, Inc.
c/o Kroll Settlement Administration LLC
PO Box 225391
New York, NY 10150-5391
[email protected]
833-425-9910

Class Counsel

Julian Hammond
Christina Tusan
Adrian Barnes
Ari Cherniak
Polina Brandler
HAMMONDLAW PC

Warren D Postman
KELLER POSTMAN LLC

Defense Counsel

Sheila A G Armbrust
James W Ducayet
Michele L Aronson
SIDLEY AUSTIN LLP