DATA LEAK HURRY UP: Taxpayers can score one-time payments from $14.95 million filing settlement – and there are three ways to claim
According to THE SUN, Americans who filed their taxes using the do-it-yourself service TaxAct.com may be entitled to cash payments as part of a $14.95 million settlement. This follows reports that TaxAct shared taxpayer information with third-party companies, including Meta and Google, without adequately protecting user privacy.
The settlement applies to individuals who filed a tax return and Form 1040 using TaxAct between January 1, 2018, and December 31, 2022.
Allegations of Privacy Violations
The lawsuit against TaxAct alleges that the company failed to protect the privacy of its users by allowing third parties to access their personal data. While TaxAct denied any wrongdoing, the company agreed to settle to avoid further litigation costs.
Also read: Struggling gas station chain files for Chapter 11 bankruptcy
Who Qualifies for the Settlement?
Americans who filed taxes through TaxAct and submitted Form 1040 during the specified period may qualify for a payout. Additionally, individuals whose spouse filed taxes jointly may also be eligible, even if they did not file the return themselves.
Payouts for most filers are expected to be approximately $18.65, and Californians who qualify may be entitled to additional benefits. On top of the cash payout, users may also receive free tax filing services with TaxAct for the 2024 tax year.
However, individuals who have previously filed an arbitration demand against TaxAct are excluded from the settlement.
Also read: Renew Food Stamps in Texas: How can you reapply online for SNAP benefits?
Deadline to File a Claim
The deadline to file a claim is quickly approaching, with claims needing to be submitted by September 11, 2024. Claims can be filed online, by mail, or through a phone request for a form.
Data Breach Settlements and Other Class Actions
Data breaches have become a common source of class-action lawsuits. For example, a services company working with telecommunications providers is paying $4,400 to individuals affected by a data breach.
Class actions also arise for other reasons, such as a recent religious rights lawsuit in New York. Two Muslim women were forced to remove their head coverings for mugshots, and eligible claimants could receive nearly $8,000. There’s also a $9.2 million skincare settlement and another data breach offering up to $5,000 in compensation.
