TaxAct Moves to Compel Tax-Sharing Claims to Arbitration
Plaintiff Matthew Hartz’s allegations that TaxAct violated congressional and IRS safeguards against the sharing of private tax return information with third parties when it transmitted sensitive personally identifiable information to Facebook and Google (see 2307170033) must be compelled to arbitration…
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and his action stayed pending the outcome of that arbitration, said TaxAct’s memorandum of law Friday (docket 1:23-cv-04591) in U.S. District Court for Eastern Illinois in Chicago in support of its motion. Hartz can’t litigate his claims in the Eastern District of Illinois, said the memorandum. That’s because when Hartz used TaxAct’s tax preparation products and services, he agreed to do so under TaxAct’s standard terms and conditions of service, it said. Those terms require any disputes, including those at issue here, to be resolved by “confidential binding arbitration,” and that it be conducted on an individual, and not class-wide, basis, it said. The pertinent arbitration provisions also include “delegation clauses,” which delegate all issues aside from “contract formation” to the arbitrator, it said.