Identity Verification (KYC / AML) Disclosure

To comply with IRS regulations, bank partner agreements, refund transfer requirements, fraud prevention controls, and security best practices, TaxWallet (“Company”, “we”, “our”) performs identity verification (“KYC”), fraud screening, and anti-money laundering (“AML”) checks for certain actions on the Platform.

Identity verification may be required for:

• Creating or maintaining a professional account,

• Connecting banking products, refund transfer modules, or merchant processors,

• Submitting electronic signatures,

• Accessing secure documents or confidential taxpayer information,

• Using mobile app services including location-based features.

By using the Platform, you consent to these verification processes.

To perform identity verification, TaxWallet may collect and process:

• Full legal name, date of birth, phone number, and email address,

• Government-issued identification (driver’s license, passport, ID card),

• Selfie photographs and biometric comparison data (FaceMatch),

• Device data including device ID, system version, IP address, risk score, and login history,

• Mobile app background location only when used for scheduled appointment arrival alerts or preparer proximity features,

• Geolocation signals required by banking partners or financial product providers.

TaxWallet does not store raw biometric templates; biometric comparisons are processed and returned as decision values according to strict privacy standards.

Identity data is used exclusively for:

• Identity verification and fraud prevention,

• Confirming the lawful holder of an account or taxpayer record,

• Complying with IRS e-file requirements,

• Satisfying KYC/AML obligations from banks or merchant processors,

• Preventing unauthorized access, refund fraud, or impersonation,

• Enabling secure two-factor authentication workflows.

Identity verification results are never sold, shared for marketing, or used to build external profiles.

To complete identity verification, TaxWallet may integrate with third-party KYC/AML vendors, including but not limited to:

• Banking partners performing refund transfer vetting,

• Merchant processors (Authorize.net, IntellyPay, PaySafe, Pathward ePay),

• E-signature verification partners,

• Fraud detection or OFAC screening vendors.

These partners act strictly as data processors, and:

• Must follow GLBA, FTC Safeguards, IRS Pub. 4557, and bank-level security,

• May not use your information for training, advertising, or external purposes.

You authorize TaxWallet to transmit required identity information to partners solely for compliance and fraud prevention.

Identity verification reduces fraud risk but cannot guarantee user authenticity.

You acknowledge and agree:

• Verification results are probabilistic, not absolute,

• TaxWallet is not liable if a fraudulent user successfully passes identity checks,

• You are responsible for reviewing client identity, tax data, and filings.

TaxWallet assumes no responsibility for:

• Incorrect verification results,

• Fraudulent activity by individuals claiming to be your clients,

• Losses arising from reliance on KYC/AML results.

TaxWallet supports multiple identity-strengthening tools including:

• SMS verification codes,

• Email verification links,

• Mobile push notifications,

• App-based TOTP codes (Authenticator Mode),

• Device ID registration for trusted devices.

For TOTP-based verification:

• Secret keys are encrypted and stored locally on the user’s device,

• Encrypted backup may be stored only if the user opts in,

• TaxWallet cannot regenerate or read the unencrypted TOTP secret.

Users are responsible for maintaining access to their TOTP device or backups.

Certain optional features on the TaxWallet mobile app use background location, including:

• Arriving-soon alerts for scheduled appointments,

• Showing nearby preparer offices when explicitly requested by the user.

Background location is:

• Disabled by default,

• Collected only after explicit OS-level permission,

• Used only for the stated feature and never for tracking or marketing.

Users may disable location at any time without affecting core tax preparation functions.

TaxWallet may perform automated or manual screening for:

• OFAC Specially Designated Nationals (SDN) lists,

• Fraud velocity patterns,

• Synthetic identities,

• Suspicious device or IP risk scores,

• Unusual filing activity across multiple EFINs or offices,

• Banking partner AML rules for refund transfers.

If a user triggers a fraud or AML alert:

• Access may be restricted immediately,

• Bank partner access may be blocked,

• Additional verification may be required,

• The account may be suspended or terminated at our discretion.

Users, tax professionals, and organizations agree to:

• Provide accurate, lawful identity information,

• Maintain control over devices and authentication factors,

• Not impersonate others or provide false identification,

• Inform clients about required identity steps,

• Ensure all taxpayer data is obtained with proper authorization.

TaxWallet is not responsible for:

• Identity theft committed by users or clients,

• Misuse of accounts due to shared passwords,

• Fraud resulting from user negligence.

You acknowledge and agree that TaxWallet is not liable for:

• Verification delays,

• Failed or inconclusive verification attempts,

• Banking partner approval failures,

• Merchant processor declines or fraud holds,

• Refund transfer denials due to failed KYC/AML.

All identity decisions made by financial institutions, processors, or bank partners are final and outside the control of TaxWallet.

We may modify this Disclosure at any time to reflect:

• Changes in law,

• Changes in bank partner requirements,

• Security enhancements,

• IRS regulations,

• Industry best practices.

Continued use of the Platform constitutes acceptance of the updated Disclosure.

TaxWallet Compliance & Verification Office

Email: support@taxwallet.ai

We respond promptly to verification-related inquiries.