TaxAct Class Settlement

If you used a TaxAct online do-it-yourself consumer Form 1040 tax filing product and filed a tax return using the TaxAct online product at any time between January 1, 2018, and December 31, 2022, or your spouse filed a joint tax return using the TaxAct online product during that same period, you should read the Notice as you may be entitled to a cash payment and the free use of TaxAct® Xpert Assist for your tax year 2024 return .

A Settlement has been reached between Defendant TaxAct, Inc. (“TaxAct” or “Defendant”) and Plaintiffs in a class action lawsuit pending in the United States District Court for the Northern District of California.

You are included in this Settlement as a Settlement Class Member if you are a member of either or both of the following two Settlement Classes:

The Nationwide Class : this Class includes all natural persons who used a TaxAct online do-it-yourself consumer Form 1040 tax filing product and filed a tax return using the TaxAct online product at any time between January 1, 2018, and December 31, 2022, and whose postal address listed on their tax return was in the United States. The Nationwide Class includes a California Subclass of members whose postal address listed on their tax returns was in California.

The Nationwide Married Filing Jointly Class : this Class includes all natural persons whose spouse used a TaxAct online do-it-yourself consumer Form 1040 tax filing product and filed a joint tax return using the TaxAct online product at any time between January 1, 2018, and December 31, 2022, and whose postal address listed on such joint tax return was in the United States. The Nationwide Married Filing Jointly Class also includes a California Married Filing Jointly Subclass of members whose postal address listed on the joint tax return was in California.

If, as of January 9, 2024, you filed a demand for arbitration against TaxAct to arbitrate claims that would otherwise be released in accordance with the terms of the Settlement Agreement, you are excluded from both Settlement Classes unless you elect to opt-in to the Settlement Classes by filing a timely Claim Form.

This lawsuit is known as Smith-Washington, et al. v. TaxAct, Inc., Case No. 3:23-cv-00830 (N.D. California). Defendant denies that it violated any law but has agreed to the Settlement to avoid the costs and risks associated with continuing this case.

Your rights are affected whether you act or don’t act. Please read the Notice carefully.

SUMMARY OF YOUR LEGAL RIGHTS AND OPTIONS IN THIS SETTLEMENT

The only way to receive a cash payment from this Settlement and the free use of TaxAct® Xpert Assist for your tax year 2024 return is by submitting a timely and properly completed Claim Form that obtains approval from the Settlement Administrator. The Claim Form must be submitted no later than September 11, 2024 .

You can submit your Claim Form online or download the Claim Form and mail it to the Settlement Administrator. You may also call the Settlement Administrator to receive a paper copy of the Claim Form.

As a Settlement Class Member, regardless of whether you submit a Claim Form, provided that you do not opt-out of the Settlement, if the Settlement is approved by the Court you will give up the right to sue the Defendant in a separate lawsuit about the legal claims or factual allegations this Settlement resolves.

However, if, as of January 9, 2024, you filed a demand for arbitration against TaxAct to arbitrate claims that would otherwise be released in accordance with the terms of this Settlement Agreement, you are excluded from both Settlement Classes unless you elect to opt-in to a Settlement Class by filing a timely Claim Form.

September 11, 2024

OPT-OUT OF THE SETTLEMENT

You can choose to opt-out of the Settlement and receive no payment or free use of TaxAct® Xpert Assist. This option allows you to sue, continue to sue, or be part of another lawsuit against the Defendant related to the legal claims and factual allegations resolved by this Settlement. You can choose to hire your own legal counsel at your own expense.

For more information see Question 17.

September 11, 2024

OBJECT TO THE SETTLEMENT AND/OR ATTEND A HEARING

If you do not opt-out of the Settlement, you may object to it by writing to the Court about why you don’t like the Settlement. You may also ask the Court for permission to speak about your objection at the Final Approval Hearing. If you object, you may also file a Claim Form.

For more information see Question 18 .

August 12, 2024

Unless you opt-out of the Settlement, you are automatically part of the Settlement. If you do nothing, you will not get a payment or free use of TaxAct® Xpert Assist from this Settlement and you will give up the right to sue, continue to sue, or be part of another lawsuit against the Defendant related to the legal claims or factual allegations resolved by this Settlement.

These rights and options—and the deadlines to exercise them—are explained in the Notice.

The Court in charge of this case still has to decide whether to approve the Settlement.

The Notice summarizes the proposed Settlement. For the precise terms of the Settlement, please see the Settlement Agreement, by contacting Class Counsel, whose contact information is listed in Question 13, by accessing the Court docket in this case, for a fee, through the Court’s Public Access to Court Electronic Records (PACER) system at http://ecf.cand.uscourts.gov, or by visiting the office of the Clerk of the Court for the United States District Court for the Northern District of California, San Francisco Division, 450 Golden Gate Avenue, San Francisco, CA 94102, between 9:00 a.m. and 4:00 p.m., Monday through Friday, excluding Court holidays.

PLEASE DO NOT TELEPHONE THE COURT OR THE COURT CLERK’S OFFICE TO INQUIRE ABOUT THIS SETTLEMENT OR THE CLAIM PROCESS.

This website is authorized by the Court, supervised by counsel and controlled by Kroll Settlement Administration LLC, the Settlement Administrator approved by the Court. This is the only authorized website for this case.