BIG TAXING TIME: Taxpayers can claim payment from $14.95 million ‘privacy’ settlement – but how you file will determine if you see cash
According to The Sun USA, TaxAct.com, a popular tax filing service, has agreed to a $14.95 million settlement after allegations surfaced that the company shared users’ personal information with third-party services like Meta and Google. This action, which users claim violated federal and state laws, could mean compensation for eligible Americans who used the service to file their taxes.
Although TaxAct denies any wrongdoing, the company has chosen to settle the claims to avoid further litigation.
Eligibility for the Settlement
Individuals who filed a tax return and a form 1040 through TaxAct.com between January 1, 2018, and December 31, 2022, may qualify for a portion of the settlement. Both individual and joint filers are eligible to submit claims.
There are specific settlement subclasses for California residents, though it’s unclear if they will receive additional compensation. The expected payout for class members is approximately $18.65, and they will also receive free tax services for the 2024 tax year.
To receive a payment, eligible customers must file a claim by September 11.
Security Settlement with Group 1001
In a separate case, customers with insurance through Group 1001 may be eligible for a one-time payment of up to $5,000. This comes after a class action lawsuit was filed following a data breach in February 2023. The lawsuit alleged that Group 1001 failed to protect customer data, leading to the exposure of sensitive information for clients, their dependents, payees, and employees.
Group 1001 has also denied any wrongdoing but agreed to a $4.76 million settlement to resolve the claims and avoid further legal expenses.
Eligible individuals should have received a Class Member ID by mail, which is required to file a claim. Those who did not receive a postcard can contact the settlement administrator for assistance. Claimants must provide documentation proving that they faced losses due to bank fees, credit card costs, travel expenses, communication charges, or lost time, calculated at a rate of $20 per hour.
The deadline to file a claim in this case is October 10.
Additional Settlements
Employees of a prominent company may be eligible for four payments from an overtime settlement, while Walmart shoppers could receive compensation from a $3.88 million settlement related to overcharging.
