Schmitt & Battaglino Tax & Accounting Inc., a tax preparation firm based in Centralia, Washington, has notified affected clients and the Washington State Attorney General’s Office of a data security incident involving unauthorized access to its systems. According to the firm’s notification letter, the incident resulted in fraudulent tax returns being filed using the Social Security numbers of at least eighteen clients.
Tax preparation firms occupy a uniquely sensitive position in the data security landscape, since they routinely collect and store the exact combination of information, Social Security numbers, income records, and banking details, that is most valuable to identity thieves and most useful for filing fraudulent tax returns. Firms entrusted with this information have a responsibility to protect it, and when that protection fails, the resulting harm can extend well beyond the immediate breach.
Schmitt & Battaglino Tax & Accounting Inc.’s Data Breach Investigation
According to the firm’s notification letter, an unauthorized party accessed its systems on May 28, 2026, and the incident was discovered on June 4, 2026. The firm confirmed that the incident directly affected eighteen clients and that fraudulent tax returns were filed with the IRS using those clients’ Social Security numbers. The firm stated it is not aware of a fraudulent return being filed using every notified client’s Social Security number, but is offering credit monitoring and identity protection services to all clients as a precaution given the unauthorized system access.
In response, Schmitt & Battaglino Tax & Accounting Inc. said it contacted the IRS to request protective measures against further fraudulent filings, changed its Electronic Filing Identification Number, updated passwords, strengthened account access controls, and implemented dual verification for system access. The firm also reported the incident to the Washington State Attorney General’s Office, the Federal Trade Commission, and the Federal Bureau of Investigation.
Data breaches at tax preparation businesses are especially damaging because the fraud they enable, fraudulent tax filings, often is not discovered until a victim attempts to file their own legitimate return and finds it has already been submitted in their name. Resolving tax-related identity theft with the IRS can take months, and in the meantime victims may face delayed refunds and additional scrutiny of their accounts. Because tax records also frequently include banking information used for direct deposit of refunds, an intrusion into this kind of system can expose both a person’s identity and their access to funds at the same time.
The firm is offering twelve months of complimentary Experian IdentityWorks credit monitoring to affected clients, and has indicated it will reimburse clients for costs associated with changing bank account numbers if their financial institution determines that step is necessary. These measures reflect the seriousness of a breach involving both Social Security numbers and financial account information, a combination that significantly raises the risk of both new-account fraud and direct financial loss.
When Did This Breach Occur?
The unauthorized access occurred on May 28, 2026, and was discovered by Schmitt & Battaglino Tax & Accounting Inc. on June 4, 2026. The firm’s notification letter to affected clients is dated July 6, 2026.
What Information Was Breached?
According to the firm’s notification letter, the information that may have been accessed includes names, Social Security numbers, tax records, and financial or banking information maintained in connection with tax preparation services.
What You Can Do
If you have received a notice from Schmitt & Battaglino Tax & Accounting Inc. regarding this data breach, or believe you may have been affected, consider taking the following steps:
- Contact the IRS Identity Protection Specialized Unit if you have not already been issued an Identity Protection PIN, and monitor for any notices about tax returns filed in your name.
- Contact your bank or financial institution to review your accounts and discuss whether new account numbers are needed.
- Enroll in the complimentary Experian IdentityWorks credit monitoring offered by the firm.
- Place a fraud alert or credit freeze with the three major credit bureaus (Equifax, Experian, and TransUnion).
- File your tax return as early as possible in future tax seasons to reduce the risk of another fraudulent filing.
File a Data Breach Lawsuit Against Schmitt & Battaglino Tax & Accounting Inc.
If you were notified that your personal information was exposed in the Schmitt & Battaglino Tax & Accounting Inc. data breach, you may have legal options available to you. Tax preparation firms that collect and store sensitive financial and identifying information are expected to implement reasonable safeguards to protect it, and when a breach occurs, affected individuals may be entitled to compensation for the resulting risk and any actual harm they experience, including fraudulent tax filings.
Contact us at Class Action U, where we’ll connect you with a lawyer skilled in class action lawsuits. If you’ve been contacted about this breach, received notice, or discovered you were impacted, fill out our quick, easy, and secure form to sign up. There is no cost to reach out to our legal partner and no obligation after speaking with someone from our team.
