Alabama Surprise

[Snaggletooth]

As a Tennessee preparer, I do a few Alabama returns, and did my first one a couple days ago. When getting ready to e-file, I was blocked because I did not obtain Drivers' License number. Gatekeeper message said this was for security reasons. (I doubt security has anything to do with it - probably more interception of claims against refunds such as child support)

I am noticing a trend -- more and more states and taxing authorities are insisting on electronic filing. However, when attempting to file, we are noticing more data mining on the part of the state. Either you furnish information not really essential or the website/portal locks you out.

Only information essential to the filing of the return should be required, and blockages supplied only when incompatible information is attempted. There should not be any gatekeeping function to gather more nonessential information and I can see trends starting with this.

I wonder if a taxpayer who had significant income but no Alabama driver's license number could get away with not filing at all. It would be poetic justice.

Surprise!! Alabama wants non-essential information.
Surprise!! Alabama gets 4 million paper returns!

Harlan Lunsford would turn over in his grave...

[Burke]

I have one of these right now. TP has transferred to Alabama and bought a house, but has VA driver's license and wife has Texas DL! I doubt if that info is going to pass AL tests. What good would it do them, since they can't cross-check other states (I don't think.) Does this mean paper filing?

Edit: found the following:

State Issued Driver's License Required When Filing 2015 Income Tax Return

Alabama Society of CPAs > State Issued Driver's License Required When Filing 2015 Income Tax Return


In an effort to provide a solution for the Alabama Department of Revenue Drivers' License requirement for all e-filed returns, specifically those individuals who do not have an Alabama Drivers' License or a state issued non-driver identification, the ASCPA State Taxation Committee has worked with the ADOR to offer guidance for immediate problem. The ADOR announcement below is effective immediately:


In a continual effort to fight stolen identity tax refund fraud the Alabama Department of Revenue is requiring taxpayers provide their state issued driver's license (or state issued non-drivers ID) when electronically filing their 2015 income tax return.

Tax preparers should make a good faith effort to obtain the actual drivers' license or state issued non-drivers' id from their clients. In the event that your client is a child or elderly person without a driver's license or state issued non-drivers id you may enter the following information in order to electronically file the tax return for your client:


Driver's License #: 7777777
Driver's License State: AL
Issue Date: 11/1/11
Expiration date: 11/1/17

Children and the elderly are often the target of criminals, the Department will take additional steps to validate refund claims filed using the above information.

[Snaggletooth]

Revisit the issue

Original post was a classic case of whining, but I do see the danger of electronic filing being used by taxing authorities to datamine for other information. Information which may have nothing to do with the processing of the tax return.

I thought I would update the topic for what has happened to my Alabama customers.

If a joint return, they have added the requirement for BOTH drivers' license. In many cases, the spouse is not available for the tax interview. Client seldom wants to chase down the spouse to dig it out, preferring instead a paper return. Other clients are disgusted with what they perceive to be information tightening noose around the necks of citizens, and tell me just to file a paper return.

I can't promise that I discuss with Alabama clients in a totally non-biased manner, but so far I can tell you that less than 50% of my Alabama clients are successfully electronically-filing their state return.

[Burke]

I was able to get the DL's (which are from other states!) and have created an efile. Not yet filed, as I am waiting on the signed 8879's. So I guess it is going to go through okay. The nightmare was doing a part-year for the spouse who does not qualify for military spouse exemption, and filing her separately from husband who is classified as non-resident. Whew, I am glad that one is over!

[S T]

Burke, were you able to efile the Alabama return with other States DL? I have one that I am preparing now

Sandy