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IRS Free File Program and Privacy Issues

The IRS Free File program has generated usage far beyond agency expectations, with 53 million taxpayers anticipated to file eletronically this year according to CNN. However, there is a flip side to this free web service. A coalition of advocacy groups (EPIC, Consumers Union, the Consumer Federation of America, National Consumer Law Center, and the U.S. Public Interest Research Group) in a joint letter to Pamela F. Olson, Assistant Secretary for Tax Policy, contends that free file services offered by H&R Block violate user privacy by collecting and using personal data provided by taxpayers to cross-market them for other affiliated and third party services. The coalition communicated similar privacy related concerns about free file services to the agency last year.

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