Reader Heather Osborne in Ottawa asks: “If I use tax software, is my data protected? Or am I giving away my personal financial information?” Report on Business reporter Ian McGugan says, “No – at least not without your consent. You should check the details in the privacy agreement that accompanies whichever software package you use, but generally you must approve any use of your personal information.” He explains:
Intuit, maker of the popular TurboTax software, declares it “will not rent, sell, or otherwise distribute your personal information without your permission.” The main exceptions are if courts demand the information be handed over or if the information is “reasonably required” to fulfill your service or product requirements, but even then the third parties are bound to privacy requirements.
But here’s where things get tricky: Read your privacy statement and you’ll find that every tax software company will acknowledge making use of your personal information in various ways that does not involve actually selling it. You may or may not find these to be objectionable.
H&R Block, for instance, says it will use your personal information to alert you to products and tailor marketing material to your needs. You can choose not to receive these materials by calling them at a number provided or sending them an e-mail.