States Requiring License Info

[Rapid Robert]

"So I can vote as many times as I want to without an ID, but to pay my taxes I need a picture ID?!?!).

That's what's so funny about this. Why would a tax return showing a balance due be suspected of identity theft? Unless someone was trying to prank you, but so far it seems the bad guys are more interested in money than personal vendettas.

[dtlee]

It just does not make sense when "there's a code to enter that states "Not Applicable".

Seems that without making mandatory that every taxpayer has a state issued I.D. it seems to defeat the purpose to defeat ldentity theft. Then again making mandatory that every taxpayer has a state issued I.D opens up all kinds of issues.

Your comments make sense but the effort appears to be to reduce the potential for identity theft, not to create a perfect solution. There has been national resistance to requiring every American to have and maintain a photo ID card and the fact that many do not have one is what encourages us to consider it un-American to require an ID card to vote (as one client said to me, "So I can vote as many times as I want to without an ID, but to pay my taxes I need a picture ID?!?!).

According to New York State, they use multiple methods to assess potential identity theft and assign a weight to each. They will not automatically reject a return with the same employers/payers, address, and bank direct deposit information just because it does not have photo ID information. I presume that if a photo ID is present but everything else changes, they may still have an issue with the return (An elderly person in a nursing home may have a license stolen and never know it). New York also asks for specific information about their license/ID that is not as easily obtained electronically because it is rarely collected. Thus, I may have a client who has a picture ID (honestly, few of my clients actually look like their picture), but the picture ID may be stolen or forged. Even if the ID number and dates are correct, New York asks for the additional information to detect that it may not be the true and current ID. I had a client who got a replacement license after "losing" her original and then found her original. She did not know that it would matter on her tax return which document she used. Had she used the original, it would likely have caused a problem since she had reported it lost or stolen.

This stuff will never be perfect (at least that is the goal of the identity thieves).

[TAXNJ]

Well said

As you should well know - the primary purpose is to prevent identity theft fraud. Is it perfect? No.
As you should also know - it only works for e-filed returns.
I'm not the state authorities - ask them.

It just does not make sense when "there's a code to enter that states "Not Applicable".

Seems that without making mandatory that every taxpayer has a state issued I.D. it seems to defeat the purpose to defeat ldentity theft. Then again making mandatory that every taxpayer has a state issued I.D opens up all kinds of issues.

[David1980]

Yes. So what is the purpose of driver license? If someone rather give your their employee badge or high school picture rather then their driver license would that be acceptable?

Presumably the state could decide to do additional ID validation checks on those returns where no driver's license is available. High school pictures / employee badges aren't accounted for in the IRS schema, - my guess is a state could have the ability to validate that the driver's license information entered matches the information in the state's driver's license database, but would have no way to do so for an employee badge.

[Uncle Sam]

As you should well know - the primary purpose is to prevent identity theft fraud. Is it perfect? No.
As you should also know - it only works for e-filed returns.
I'm not the state authorities - ask them.

[TAXNJ]

Yes

If the taxpayer has no driver, or non-driver license, there's a code to enter that states "Not Applicable".

Yes. So what is the purpose of driver license? If someone rather give your their employee badge or high school picture rather then their driver license would that be acceptable?

[Uncle Sam]

If the taxpayer has no driver, or non-driver license, there's a code to enter that states "Not Applicable".

[Bucky]

In Ohio if you don't have a drivers license they want your Ohio ID card number.

[TAXNJ]

No license

Question. What about clients who do not drive and do not have a driver license?

[TaxGuyBill]

that's what I was told too. all states will be requiring it this coming season

Minnesota as specifically said it will not be required.

I suspect that whoever said that may have mixed up that most States are collecting that information (optional) versus being required.

[taxmom34]

that's what I was told too. all states will be requiring it this coming season

[Uncle Sam]

When I inquired about this to my software company (Ultra Tax) during the past tax season, I was told that for 2017 virtually every state was going to require it. I don't know how true that is, even at this point.

[Bucky]

Ohio does also.

[TaxGuyBill]

Most states ask for that information, but as far as I know, only Alabama, New York, Ohio, and Rhode Island require it to e-file (Federal requires some type of input, even if it is to say the taxpayer did not provide a driver's license).

Here is an Intuit article about it:

https://accountants-community.intuit.com/articles/1608863-state-agency-driver-s-license-and-state-id-expectations

[ATSMAN]

I think Massachusetts is another

For 2017 tax season MA did not require Driver's License # on tax returns. I am not sure if they will require that for the 2018 tax season.

It is a good practice to get that information upfront. For all new clients I scan their Driver's License or State issued Pic. ID