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Plain-English summary
This review of TaxAct's Terms of Service highlights several significant concerns regarding user rights and liabilities. Notably, the agreement includes a class action and jury trial waiver (risk_flags-1), requiring disputes to be resolved through individual arbitration unless users opt out within 30 days. Users are fully responsible and liable for all content and information they submit, including third-party data, and must indemnify TaxAct against related claims (risk_flags-2). Furthermore, TaxAct has no obligation to store or maintain user-provided information, placing the responsibility on users to save copies of their tax returns (risk_flags-3).
The terms also severely limit TaxAct's liability for damages and disclaim most warranties, providing services "as is" and "as available," meaning users have limited recourse for errors or service interruptions (risk_flags-4). The use of AI-Powered Tools is another area of concern, as these tools are not reviewed for accuracy, and TaxAct is not responsible for their outputs, placing the burden of verification on the user (risk_flags-5).
Fees for services are generally non-refundable (cancellation_renewal-1). Additionally, TaxAct retains the right to modify or discontinue services and change terms at any time (gotchas-1). Users also consent to the disclosure of their service usage information, such as IP address, to tax authorities when using electronic filing.
89% confidence
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Follow up on findings with grounded answers from this review. Not legal advice.
Risk Flags
5 findings
Critical issues that pose a significant risk of harm to users.
high95% confidence
Waiver of Class Action and Jury Trial
This agreement includes a class action and jury trial waiver, requiring disputes to be resolved individually through binding arbitration unless you opt out within 30 days.
Why it matters: You waive your right to participate in a class action lawsuit and to a jury trial, meaning disputes will be handled individually through arbitration.
This Agreement (Section 13) contains a class action waiver provision that requires the parties to resolve all disputes on an individual basis and limits the remedies available to you in the event of certain disputes relating to the operation or use of the services. Unless you opt out of arbitration within 30 days of the date you agree to this Agreement, you agree that any dispute that cannot be informally resolved between us will be resolved by binding, individual arbitration and you waive your right to participate in a class action lawsuit.
TaxAct Terms of Service, paragraph 1 · Citation strength: strong
high90% confidence
Liability for Third-Party Content and Indemnification
You are solely responsible for all content and information submitted through your user identification, including third-party data, and must indemnify TaxAct against related claims.
Why it matters: You bear all responsibility and legal costs for any content or data you submit, including information related to third parties, and must protect TaxAct from any claims arising from it.
You acknowledge and agree that you are solely responsible for all content, data, and information submitted by your user identification into the Services, including, without limitation, content, data, and information relating to third parties. You hereby indemnify and hold harmless TaxAct from and against any third party claims, liabilities, costs and expenses, including attorney’s fees, related to such content, data, and information submitted by you.
Limited License to Content, paragraph 1 · Citation strength: strong
high90% confidence
No Obligation to Store or Maintain User Information
TaxAct has no obligation to store or maintain any information you provide, making you responsible for saving copies of your tax return.
Why it matters: You could lose important tax information if you don't save copies yourself, as TaxAct is not required to keep it.
To the fullest extent permitted by applicable law, TaxAct has no obligation to store or maintain any information you provide to it, and you are responsible for printing or saving a copy of your tax return for your records.
Limited License to Content, paragraph 1 · Citation strength: strong
high90% confidence
Limitations on Liability and Disclaimers of Warranties
TaxAct disclaims all warranties regarding its services and content, which are provided "as is" and "as available." The company and its associated parties are not liable for indirect, special, incidental, or consequential damages, with total liability limited to the amount paid for the services and content, except for certain guarantees.
Why it matters: You have limited recourse if the services contain errors or cause damage, as TaxAct does not guarantee accuracy, completeness, or uninterrupted service, and their liability for damages is severely restricted.
Except for the guarantees expressly set forth in Section 7 of this Agreement, TaxAct does not warrant that the Services are accurate, complete or free of errors, interruptions, viruses or other harmful components or that the services will be available 24 hours per day, seven days per week.
Maximum Refund Guarantee, paragraph 13 · Citation strength: strong
high90% confidence
AI-Powered Tools Not Reviewed for Accuracy or Content
AI-Powered Tools may provide inaccurate or incorrect information, and TaxAct is not responsible for the accuracy or appropriateness of their outputs.
Why it matters: Information, decisions, or advice received from AI tools might be wrong, and you are responsible for verifying their accuracy before relying on them.
AI-Powered Tools may provide inaccurate or incorrect information so you are required to confirm the accuracy and appropriateness of any solutions offered by AI-Powered Tools before use.
Policies on the collection, processing, and sharing of user data.
medium85% confidence
Chat Transcripts May Be Kept and Monitored
Chat transcripts from AI-powered chatbots may be kept for future reference, and AI-powered chatbots allow TaxAct and its vendors to monitor and analyze how visitors use the website.
Why it matters: Your conversations with AI chatbots may be saved and analyzed, which could impact your privacy.
Chat transcripts may be kept for future reference. Use of such chatbots and similar features is for general information only; please understand that information, decisions, advice, or materials provided by or retrieved from the bot have not been reviewed for content or accuracy. These features may have limitations and inaccuracies and thus may not be appropriate for your situation. Note that some technologies used on our website, including AI-powered chatbots, allow us and our vendors to monitor and analyze how visitors use our website to better understand user behavior and improve our Services.
Terms related to account cancellation, subscription renewal, and associated refunds or fees.
medium90% confidence
Fees are Non-Refundable
All fees and charges related to the Services are non-refundable, except as otherwise provided in the agreement.
Why it matters: You might not be able to get your money back for fees paid, even if you stop using the service.
You must use your valid form of payment to pay all fees and charges related to the Services and, except as otherwise provided herein, all fees and charges are non-refundable.
Limited License to Content, paragraph 1 · Citation strength: strong
Gotchas
1 finding
Potentially surprising or less-than-obvious terms that could be disadvantageous to users.
low85% confidence
Modifications to Services and Terms at Any Time
TaxAct reserves the right to modify or discontinue services or change the terms of the agreement at any time and for any reason.
Why it matters: The services you use, including their features, availability, pricing, and the terms of this agreement, can change without notice.
TaxAct has the right at any time and for any reason to modify or discontinue the Services or any aspect or feature of the Services, including but not limited to their Content, functionality or hours of availability, the equipment needed for its access or use, or pricing. In addition, TaxAct reserves the right, at any time, to change the terms of this Agreement.