David Lazarus of SFGate writes that privacy issues aren't the only concern with web bugs that track people's actions as they file online tax returns with Intuit's TurboTax and H&R Block. The use of such bugs to gather information on taxpayers and share it with web analytics firms likely also violates California law (Section 17530.5 of the California Business and Professions Code), according to State Sen. Joseph Dunn, D-Santa Ana, who introduced the legislation in 2000 to expand the law on disclosure of tax info to include electronic filing.

It's a misdemeanor for any company "to disclose any information obtained in the business of preparing federal or state income tax returns or assisting taxpayers in preparing those returns, including any instance in which this information is obtained through an electronic medium."

Such information may be shared only if "consented to in writing by the taxpayer in a separate document that states to whom the disclosure will be made and how the information will be used."