Tax Preparer Accused Of Misusing E-Filing Tax Information

by Glen Shapiro, LawAndTax-News.com, New York

31 March 2003

US financial services provider H&R Block has been accused by consumer groups of using privileged tax information to market other financial services to those using its free tax preparation service.

In a complaint filed with the Treasury Department last week, the consumer groups warned that taxpayers who make use of the free H&R Block tax services available via the IRS's website find themselves bombarded with pop-up windows advertising other services provided by the company, related to the information that they have entered.

'This new level of marketing, based on the information a taxpayer enters into his tax return using Free File, is extremely troubling and requires enforcement action by Treasury and the Internal Revenue Service,' the complaint alleged.

However, in a statement released in response to these charges, the company asserted that: 'The consumer groups' claims are inaccurate. In fact, H&R Block secures its clients' consent twice.'

The tax preparer claims that it is abiding by the terms of a law, passed in 1999, which allows financial institutions to share customer information with affiliates.

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