ProSeries 2015 dirvers license info

[David1980]

The ID theft problem can be greatly reduced by one simple change. No direct deposit refund and no refunds on debit cards. See, wasn't that easy?

I agree. Not all id theft of course, some still deal in checks but the fact a debit card doesn't require verifying ID at a check cashing place or similar makes it much easier.

One problem is banks / credit unions that share RTN information between regular bank accounts and prepaid debit cards. The IRS could refuse to issue any refunds to those RTNs but then it isn't limited to debit cards. It also requires someone maintain a list of all RTN that are used for debit cards. Perhaps there should be a debit card indicator with RTN/DAN info. I've got no idea who could make that happen.

[TAXNJ]

Yes

The ID theft problem can be greatly reduced by one simple change. No direct deposit refund and no refunds on debit cards. See, wasn't that easy?

Too easy. But your right.

[DaveO]

The ID theft problem can be greatly reduced by one simple change. No direct deposit refund and no refunds on debit cards. See, wasn't that easy?

[August @ ADG Financial]

Latest from PS...

Here's the latest from ProSeries on the subject of requiring Driver Licenses.

https://accountants.intuit.com/support/tax/proseries/document.jsp?product=PROSERIES_TAX&id=INF29070

you may have to paste into your web browser. The only question I have is. I they can't keep SS# secure how are they going
to keep Driver Licenses Secure?

[Dusty2004]

Proseries update

The federal is not requiring this information. They do have it in the program.

We are looking at if we should request it and if we should enter it in. Trying to weigh if at some point they will require it will we be better off to enter in those who bring it in now and then we will have fewer to enter when the time comes.

Dusty

[Rapid Robert]

Let me guess. . .

You charge extra to obtain RTN / DAN for direct deposit of refunds ? (Doubt if you even bother with direct debits.)

You charge extra to enter PIN that IRS has provided to taxpayer ?

You charge extra to change a mail address, or a daytime contact telephone number (or is that just left blank) ?

You charge extra to change last name of someone with recent marriage / divorce ?

Your guesses are all completely wrong. If my client requests certain updates to basic info, or if I suggest it is in their best interest, I do not charge extra. Not one client has ever asked me to keep a record of their driver's license info. The only time I have done so is back when I worked for H&R Block, as it was required info under the PATRIOT Act to receive a bank product (RAC, etc).

When I said I wasn't going to do it "for free", I wasn't referring to doing work for my clients, I was referring to doing work for the IRS.

BTW: As for "worry" about client with a balance due return, did it ever occur to you that part of the problem is someone (else) is frequently filing refund returns before a legitimate state return is ever filed?

Please try re-reading what I wrote for better understanding. I agree that filing a refund return could benefit from better ID theft protection. My comment was about balance-due returns -- for which a driver's license or other type of poor security information is useless. Are you implying the government should not accept a balance-due return or the accompanying payment without more security?

[kathyc2]

I have to wonder if the IRS is authorized by law to even be able to require this information???

I would say that none of my clients would mind me having their DL info, but some of the very anti-gov't clients would have a big problem with me providing the IRS w/ the info.

[Lion]

My own identity was stolen, so far for tax filing (federal) only. I don't know where they obtained my info (just mine, not hubby who's primary on our returns). But, almost anyplace I have to use my SSN -- I'm on Medicare, so that's ALL places medical -- I also have to show my photo ID as proof of identity. So, my DL as well as SSN are with my mail-order pharmacy, hospital, doctors (all of whom seem to be part of much larger medical groups for billing purposes, Yale, New England Medical, etc.) If the thief files another return using my name/SSN for 2015, he probably has my DL and will have no problem e-filing again. Don't see how it will help me. Don't see how it will help keep the IRS from paying out a fraudulent refund.

[TAXNJ]

Problem

Update: A ProSeries article says it "requires" the information for e-filing, and a ProSeries forum Moderator says it looks like the new MeF rules require it.



Beginning in 2015, the IRS now requires preparers to verify and enter the Taxpayer's and Spouse's identification information from their driver's license or state issued identification for e-filed returns.

https://accountants.intuit.com/suppo...AX&id=INF29070

Problem with this is that as of this date, this "requirement" has not been found on the IRS website. Also, another reply poster using Lacerte tax software (sister company of Intuit) said those ID fields not on the Lacerte 2015 software.

So you have the option of following what Pro Series says or IRS

[TaxGuyBill]

Update: A ProSeries article says it "requires" the information for e-filing, and a ProSeries forum Moderator says it looks like the new MeF rules require it.



Beginning in 2015, the IRS now requires preparers to verify and enter the Taxpayer's and Spouse's identification information from their driver's license or state issued identification for e-filed returns.

https://accountants.intuit.com/support/tax/proseries/document.jsp?product=PROSERIES_TAX&id=INF29070

[David1980]

Refunds should not be issued until the income and withholding has been verified by theIRS. That's where they need to focus efforts to prevent fraud. Be proactive, not reactive and we can beat this thing.

I agree, but that only covers the fraudulent returns that rely on bogus tax withholding. There's still the problem of refundable tax credits.

[David1980]

This idea WILL give them both, theIRS has been hacked, OPM has been hacked, and some Oregon departments have been hacked. This idea just consolidates the clients information for the taking.

I agree that it consolidates the client information for the taking. And while the IRS and other government entities could put in place appropriate safeguards on their own systems they'd have no real way to make sure every tax office does the same. Compromise someone's tax preparation business and you would get driver's license information in addition to all the information you had previously.

That's a definite negative to this. The question will be do the benefits outweigh that?

I think it stands to help with ID theft detection. The questions with the various breaches would be did they contain driver's license information and how long ago were they - since they'd need the current issued date. I don't believe that everyone or even a majority of taxpayers have their driver's license / state ID and issue/expiration dates compromised. Even for those that have been compromised it's far easier to get a driver's license reissued (and thus having a new issue date) than it is to get a social security number changed. As long as there are some taxpayers who do not have their driver's license / state ID information in the hands of the would be identity thief this sort of thing could improve identity theft detection. Will it catch 100% of ID theft? No.

[David1980]

I've been w/ Pro for a couple decades, so I don't remember what the initial set-up was like, but it doesn't seem like it would be all that difficult for a software company to check. B4 a company authorized the use of their product to an EFIN could they not check that the person/firm that is using the EFIN is the same person/firm on the credit card or other payment method?

They're actually supposed to, but obviously that doesn't always happen. I can just imagine a bunch of software companies talking about how they shouldn't have to do that and it has no benefit against fraud on a software company discussion forum somewhere.

There's also the fact that it's easy to fake. http://content.govdelivery.com/accou...lletins/324f62 - the best part of this QuickAlert from Mar. 7, 2012 is it starts out talking about false acceptance letters and then goes on to tell software developers and transmitters that one way to ascertain they are performing e-file activities only for authorized providers is by requesting a copy of an acceptance letter. Yes, the acceptance letters could be forged - you should ask for a copy of the acceptance letter.

As far as protecting your own EFIN, IRS Publication 3112 indicates that authorized IRS e-file providers must protect their EFINs. Which is brilliant considering it prints on the 8879 as part of the ERO pin on every single return you do.

So it's easy to obtain legitimate EFINs. And the benefit to using professional software vs. DIY is practitioner PIN method of signing a return. Using DIY software you must have a match with the taxpayer date of birth and the prior year PIN or prior year AGI. With practitioner PIN method you don't need an accurate date of birth nor do you have to match prior year PIN or AGI. So it's easier to do identity theft with professional software.0

[kathyc2]

One of the important takeaways from the meeting was that we need to monitor our EFIN filing records. The thieves are using real EFINs to efile and EROs need to frequently check their numbers with theIRS.

I've been w/ Pro for a couple decades, so I don't remember what the initial set-up was like, but it doesn't seem like it would be all that difficult for a software company to check. B4 a company authorized the use of their product to an EFIN could they not check that the person/firm that is using the EFIN is the same person/firm on the credit card or other payment method?

[taxmandan]

So there's basically scenarios where a thief has the social security number, the driver's license ID, or both. I would bet in most cases they do not have both however, in which case including driver's license number in return data might do a lot to cut down on identity theft. It all depends on the nature of how that identity was compromised.

This idea WILL give them both, theIRS has been hacked, OPM has been hacked, and some Oregon departments have been hacked. This idea just consolidates the clients information for the taking.