Why Does Turbotax Need My Driver’S License? (Perfect answer)

In an effort to help protect your identity and fight tax fraud, the IRS and many state tax offices are now asking that tax filers provide their driver’s license or state issued ID number. Providing this info is not required to file your taxes.

  • Why are you asking for my driver’s license or state ID? SOLVED • by TurboTax • 1132 • Updated 6 days ago. In an effort to help protect your identity and fight tax fraud, the IRS and many state tax offices are now asking that tax filers provide their driver’s license or state issued ID number. Providing this info is not required to file your taxes. However, in some states, omitting this info may delay the processing of your return.

Do you need a driver’s license to file taxes on TurboTax?

You do not need a driver’s license number to file your federal tax return.

Why is the IRS asking for my driver’s license?

The IRS and State tax offices requests that you provide your driver’s license or state issued ID number as a security measure to help protect your identity and fight tax fraud.

Do I need my ID to file my taxes?

The short answer is no; California driver’s license or state ID card information is not required to e-file a California tax return and tax returns will not be rejected if this information isn’t provided. They ask for your assistance to combat stolen-identity tax fraud and to protect taxpayers and their refunds.

Does IRS require drivers license to e file?

This is one reason why some states in recent years have required taxpayers to enter their driver’s license number on electronically-filed tax returns. The IRS does not require a driver’s license number on a federal tax return.

Why did CA reject my tax return?

If your tax return was rejected, it could be due to a number of reasons – such as missing information. However, there could be another issue, like a name or number that doesn’t match up with the data the IRS already has on file.

Can form 540NR be filed electronically?

Accepted forms Forms you can e-file for an individual: California Nonresident or Part-Year Resident Income Tax Return (Form 540NR) 6. Resident and Nonresident Withholding Tax Statement (Form 592-B)

Can I claim my drivers license on tax?

No. While the holding of a driver’s licence may be a condition of employment, it does not follow that the licence fees are deductible. They are private in nature and accordingly not deductible under subsection 51(1) of the Income Tax Assessment Act 1936.

Can you file taxes with an expired ID in Texas?

You can still use it while expired, for return purposes. That won’t affect your return. It’s an additional measure to protect your identity but not required, in all states.

What happens if you don’t have ID on Turbotax?

No, providing this info is not required to file your taxes. In an effort to help protect your identity and fight tax fraud, the IRS and many state tax offices are now asking that tax filers provide their driver’s license or state issued ID number.

What states require ID to e-file?

What states are requiring the information for electronically filed returns? At this time, only Alabama, Ohio and New York are requiring the driver’s license for electronically filing. California, Kansas, Louisiana, New Jersey, Pennsylvania, Virginia and Wisconsin, are requesting (but not requiring) the information.

What is needed to efile taxes?

When filing electronically: You must provide a copy of your Forms W-2 to the authorized IRS e-file provider before the provider sends the electronic return to the IRS. You don’t need to send your Forms W-2 to the IRS and should keep them in a safe place with a copy of your tax return.

Is eFile free?

The eFile.com Federal Basic Edition is always free. For more complicated tax returns, the tax service fee you pay is for the preparation of a tax return on eFile.com; e-Filing or printing tax returns is included or free.

Can I use my passport to file my taxes?

It is OK if the document shows a non-US address; we recommend the document corroborates the address used on your tax return. Passport (US or foreign) is acceptable as well. Importantly – employer-produced documents reporting income do not qualify for identity verification.

Turbotax Requires Drivers License for EFile

Leesbro63 Posts:7663 Joined: Monday, November 8, 2010, 4:36 p.m.

Turbotax Requires Drivers License for EFile

PostbyLeesbro63» For the previous few years, Turbotax has requested information about a driver’s license in order to file an EFile. That is completely acceptable to me. My curiosity is piqued as to whether they compare your EFile to your tax return as part of their acceptance of the EFile. In other words, do they pretty much simply accept anything you put in, then utilize the information to corroborate a questionable return later on? Was just interested how this worked and what they did with the information.

on Friday, July 14, 2017.

Re: Turbotax Requires Drivers License for EFile

PostbyZonian59» Is it necessary to include a copy of your license if you’re mailing your return in as well? As a cross check to ensure you are who you claim to be, I can see submitting your driver’s license ID being useful. However, if the tax returns get up in the wrong hands, the license number becomes still another data point to add to the mix, in addition to the Social Security number. Is this anything to be concerned about? BTW, I’m a resident of CATopic. AuthorLeesbro63 Posts:7663 Joined: Monday, November 8, 2010, 4:36 p.m.

Re: Turbotax Requires Drivers License for EFile

PostbyLeesbro63»Zonian59 2:30 p.m. on Friday, March 16, 2018 wrote: Is it necessary to include a copy of your license if you’re mailing your return in as well? As a cross check to ensure you are who you claim to be, I can see submitting your driver’s license ID being useful. However, if the tax returns get up in the wrong hands, the license number becomes still another data point to add to the mix, in addition to the Social Security number. Is this anything to be concerned about? By the way, I’m a resident of CANo.

At the very least, the Premier Desktop application does.

Posts:14328 Joined: Tuesday, December 31, 2013, 7:05 a.m.

Re: Turbotax Requires Drivers License for EFile

Posted by: PostbyJack FFR1846» My kid completed his taxes on TT, despite the fact that he does not yet possess a learners permit. We printed them out and I shipped them to him (because he is unable to drive because he does not have a driver’s license) for his convenience. It would be wonderful if they only asked for identification. He possesses a valid United States passport, which in most situations takes precedence over a driver’s license on any given day of the week. Bogle is a shrewd businessman.

Location:Iowa

Re: Turbotax Requires Drivers License for EFile

Postbylthenderson»Jack FFR1846 | Postbylthenderson wrote:↑ Friday, March 16, 2018 at 2:44 p.m. My kid completed his taxes on TT, despite the fact that he does not yet possess a learners permit. We printed them out and I shipped them to him (because he is unable to drive because he does not have a driver’s license) for his convenience. It would be wonderful if they only asked for identification. He possesses a valid United States passport, which in most situations takes precedence over a driver’s license on any given day of the week.

You can still mail in your forms if you don’t want to use it.

If you’ve already supplied that information, I assumed that they would use it to match following years before accepting the efiled forms, but that’s just a guess on my part. jtdavid Posts:198 Joined on March 1, 2007 at 12:21 p.m.

Re: Turbotax Requires Drivers License for EFile

Postbyjtdavid» That’s strange because I was not compelled to efile in the first place. It offered me the option of submitting this information in order to “prevent identity theft,” but I was able to proceed without entering any information and still successfully efiled my tax return. invst65 Posts:644 Joined on Thursday, November 27, 2014 at 11:04 a.m.

Re: Turbotax Requires Drivers License for EFile

Postbyinvst65» My daughter completed her taxes using TurboTax, and when she reached the section where she was required to provide a driver’s license, she came to me and asked what she should do because she did not have one. I told her she’d be damned if I found out, but she came back a little while later and claimed it wasn’t necessary after all. Sorry for not being able to tell you exactly what she did. I believe she stated that she just clicked continue even if she didn’t have it, and that this allowed her to complete the task.

Re: Turbotax Requires Drivers License for EFile

Postby123» IIRC, Turbo Tax began requesting this information for our 2016 tax return, and then again for our 2017 tax filing. I wasn’t really bothered about it, though. I realized that, in essence, it served as a “password” in addition to the e-file PIN, which I found amusing. It would only be effective as a password the second time it was used since they would be able to check for discrepancies (assuming the initial return wasn’t a forgery, of course). However, owing to a renewal, one of us had a fresh driver’s license issuance and expiration date for the 2017 tax return.

The nearest helping hand is just at the end of your own arm’s length away.

Re: Turbotax Requires Drivers License for EFile

Postby2015» JoeRetirewrote:↑ 1:00 p.m. on Friday, March 16, 2018. r-state-id “To further secure your identity and combat tax fraud, the Internal Revenue Service (IRS) and many state tax offices are now requesting that tax filers furnish their driver’s license or other state-issued identification number. It is not necessary to provide this information in order to file your taxes. However, in some jurisdictions, failing to provide this information may result in your return being processed later than expected.” Although I used Taxact rather than Turbotax to efile, both programs offered the same type of screen when I was finishing the efile.

I had no hesitation in submitting the number in the interest of preserving my identity and lowering the likelihood of tax fraud being committed against me.

The Golden State is the location of this event.

Re: Turbotax Requires Drivers License for EFile

Postbysergeant» I basically went through the motions of clicking through that section and e-filing it. I didn’t provide them with my driver’s license information.

It is for the ashes of his ancestors, and for the temples of his gods. Pensions are equal to two times the annual costs. Portfolio = 40 times the amount of money spent on annual costs. Gill Posts:7903 Posted on: Sunday, March 4, 2007 8:38 p.m. Location:Florida

Re: Turbotax Requires Drivers License for EFile

PostbyGill»Leesbro63wrote:↑ Friday, March 16, 2018 at 1:39 p.m. This does not provide an answer to the question. The cost-based approach is superfluous. In an investment, one has a solid foundation |One advises and provides guidance |One should adhere to the idea of investing one’s own money. BigJohn Posts:2109 Joined on Wednesday, April 2, 2014 at 11:27 p.m.

Re: Turbotax Requires Drivers License for EFile

PostbyGill»Leesbro63wrote:↑ 1:39 p.m. on Friday, March 16, 2018 In this case, the question has not been answered. The cost-based approach is superfluous in this situation. In an investment, one has a solid foundation |One advises and offers guidance |One should adhere to the idea of investing one’s own money. BigJohn Posts:2109 I joined at 11:27 p.m. on Wednesday, April 2, 2014

Re: Turbotax Requires Drivers License for EFile

In this year’s tax season, Postbynisiprius»H R Block’s tax software requested it. I don’t believe it happened last year. Annual income twenty pounds, annual expenditure nineteen nineteen and six pounds, result in happiness; annual income twenty pounds, annual expenditure twenty pounds ought and six pounds, result in misery; annual income twenty pounds, annual expenditure nineteen nineteen and six pounds, result in misery Leesbro63 is the author of this topic. Posts:7663 Joined: Monday, November 8, 2010, 4:36 p.m.

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Re: Turbotax Requires Drivers License for EFile

PostbyLeesbro63»Katietsuwrote:↑ Friday, March 16, 2018 at 7:15 p.m. There is no difference between TurboTax and TaxAct in terms of this need. For the most part, it is not a question of paper vs electronic filing. Furthermore, it is not required by the IRS. This is a matter of state law. According to what I’ve heard, New York was the first state to “demand” it. Despite the fact that there is supposed to be an option for “No Available ID.” The states of Ohio and Alabama were considering making it a mandatory.

The following is the information provided by New York: ements.pdf is a PDF document that contains a list of elements.

However, TurboTax requested the DL information after it had already determined that I was just using the EFile for Federal.

BigJohn Posts:2109 Joined on Wednesday, April 2, 2014 at 11:27 p.m.

Re: Turbotax Requires Drivers License for EFile

PostbyBigJohn» I’d want to add the following to my personal experience above, in which TT did not require a DL number in order to efile a Federal return. I volunteer as a tax preparer for the AARP TaxAide program. We’ve efiled hundreds of federal returns utilizing software and training that has been approved by the Internal Revenue Service. I can guarantee you that none of these returns necessitated the use of a tax identification number. DL numbers are required to be entered into the program, but the IRS training material makes it plain that this is an optional component that only applies if a state return is being filed with the federal government.

Recognizing this, I just disregarded TT’s original request for DL numbers, and I was successful in completing my efile without incident.

“The greatest adversary of a decent strategy is the desire for a flawless plan,” said Carl Von Clausewitz in The Art of War. NotWhoYouThink Posts:3401 Joined on Friday, December 26, 2014 at 4:19 p.m.

Re: Turbotax Requires Drivers License for EFile

PostbyBigJohn» The following is an addition to my personal experience above, in which TT did not require a DL number in order to electronically file a Federal tax return: ” The AARP TaxAide program allows me to work as a volunteer tax preparation. Through the use of IRS-approved software and training, we’ve efiled hundreds of federal returns. All of these returns did not require a DL number, I can promise you. DL numbers are required to be entered into the program, although the IRS training material makes it plain that this is an optional component that only applies if a state return is being filed with the IRS.

Recognizing this, I just disregarded TT’s original request for DL numbers, and I was successful in submitting my efile without incident.

on December 26th, 2014.

Re: Turbotax Requires Drivers License for EFile

Postbytmhudg» This was my experience just now when I filed – the system requested for information but did not require it, and I was able to e-file without providing any information. I *can* understand how that may be misleading and lead people to believe that it is essential. The majority of the time, they include a checkbox or some other means to indicate that you do *not* wish to provide the requested information (whatever it may be), and you may then proceed to the next step. When you get at this page, they inform you that it is optional, but they then show you a screen where it is not immediately evident that you may just leave all of the forms blank.

Why they are being so secretive about this is beyond me – unless the states are pressuring them to make it appear less voluntary than it actually is?

Here’s the Skinny on Driver’s License Information for State Tax Returns

It has likely come to your attention that numerous states have made it mandatory or requested that a driving license number (or equivalent state identification number) be inputted into the tax software system in order for the return to be electronically submitted. As practitioners, you are most certainly aware of the rationale behind the request — this information assists states in verifying the identification of taxpayers, which helps to reduce identity theft in the process. The mechanics of acquiring the information and communicating this necessity to your clients, on the other hand, may prove to be a significant challenge.

  • Why am I being asked for the driver’s license number of a client of mine?
  • The reasoning for this is because while a thief may have access to a taxpayer’s name and Social Security number, they are unlikely to have access to their driving license number.
  • Is it necessary to have a driver’s license or other state-issued identification in order to submit a federal tax return?
  • What states have enacted legislation requiring this information for taxes submitted electronically?
  • California, Kansas, Louisiana, New Jersey, Pennsylvania, Virginia, and Wisconsin are among the states that have asked for (but not mandated) the information in question.
  • The state tax department in the client’s home state will be the most reliable source of further information.
  • A driver’s license number or a state identity card number will be required in the event of an electronic New York extension filed through the state website.

As a result, there is no need to file a separate extension in Alabama or Ohio because both states recognize the federal extension.

This will differ from state to state.

If the taxpayer’s license or identification card is a New York driving license or non-driver identification card, the document number contained on the license or identification card must also be included.

My tax software is requesting this information, however my customer does not file in any of the states that require this information.

If you already have the information and your customer is aware that you will be utilizing it to submit their tax return, entering it into the program would be the most straightforward option.

Check with your software supplier to see if any more information is required in order to process the return.

My client is a taxpayer in a state where a driver’s license is required to be filed, but they do not have a driver’s license or other form of state identification with them at the time of filing.

There is an option to indicate that no identification is available for each of the states that need driving license information to be submitted.

What happens if I don’t supply the taxpayer’s driver’s license?

This will be determined by the state in question.

If, however, attempts to verify the taxpayer’s identification are unsuccessful, the processing of the refund may be delayed.

What is my other course of action?

In order to demonstrate that the preparer exercised adequate due effort in an attempt to collect the information and that the taxpayer refused to disclose it, they propose that contemporaneous records be maintained.

For my clients, what is the best approach for collecting and securing this information?

You should treat this information as secret, just as you would any other piece of confidential client information.

Furthermore, if your workplace is paperless, necessary precautions should be made to guarantee that the data is maintained in a safe and secure environment.

230 for a refresher on these topics.

The Association of International Certified Professional Accountants (AICPA) has hired April Walker, CPA, CGMA, as its Lead Technical Manager – Tax Practice and Ethics.

State Driver Licenses Information

The states of Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, District of Columbia, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kentucky, Kansas, Louisiana, Maine, Maryland, Massachusettsachusetts, Maine, Maryland, Massachusettsachusetts, Minnesota, Minnesota, Minnesota, Minnesota, Minnesota, Minnesota, Minnesota, Minnesota, Minnesota, Minnesota, Minnesota, Minnesota, Minnesota, Minnesota, Minnesota, Minnesota, Minnesota, Minnesota, Minnesota, Minnesota, Minnesota, Minnesota, Minnesota, Minnesota, Minnesota,

Alabama

Alabama’s official statement is as follows: The Alabama Department of Revenue is dedicated to the battle against refund fraud involving stolen identities. In order to do this, the Department requests that the taxpayer’s driving license number or State Issued ID number, as well as the state that issued it, the issuance date, and the expiration date, be included with the tax return. If you fail to include any of this information, your return will be denied, and you will be required to file a paper return.

Alaska

From Colorado: The individual income tax form for the state of Colorado contains fields for the license/ID number last four characters, the state that issued the license or ID card, and the date the driver license or state-issued identification card was issued, for both the taxpayer and their spouse. If this information is not provided, it may result in a delay in the preparation of the tax return.

Connecticut

Connecticut’s official statement is as follows: In order to preserve taxpayer identifying information and to prevent money from being misappropriated, the Connecticut Department of Revenue Services (DRS) has made a commitment. The Department of Revenue Services (DRS) continues to step up its anti-fraud operations in collaboration with the Internal Revenue Service (IRS), other state tax authorities, and tax preparers. For the purpose of combating fraud, DRS would want each taxpayer (both primary and secondary) to submit their Driver’s license or state-issued identification information into the system.

Delaware

Hawaii’s official statement is that the driver’s license or identification card information is not required to be included with the tax return.

Idaho

A statement from the state of Illinois states that while a driver’s license or state identity card is not necessary, it is preferable if it is sent with the e-filed tax return. It can be used as a security precaution to aid in the prevention of identity theft and fraudulent transactions. It is expected that you will be requested to enter your driver’s license or state ID card information if no such information is accessible or offered in the program.

Indiana

Iowa’s statement is as follows: When e-filing your Iowa return, you have the option of using information from your driver’s license.

Providing the Iowa Department of Revenue with your driver’s license information assists the department in facilitating taxpayer identification verification. This option is not accessible for Iowa returns that are submitted on paper.

Kansas

A statement from the Kentucky Department of Revenue stated that the Kentucky Department of Revenue had added a field to the individual income tax return forms 740 and 740-EZ, as well as 740-NP and 740-NP-R, allowing taxpayers to provide their driver’s license or state issued ID number if they so desired. While it is not required to provide a driver’s license or state-issued identification number, doing so may help to expedite the return processing. The Kentucky Department of Revenue screens returns for tax fraud and identity theft issues using the driver’s license or state-issued ID number provided by the applicant.

Louisiana

A statement from the Kentucky Department of Revenue stated that the Kentucky Department of Revenue had added a field to the individual income tax return forms 740 and 740-EZ, as well as 740-NP and 740-NP-R, allowing taxpayers to provide their driver’s license or state issued ID number if they so desired. A driver’s license or state-issued identification number is not required, however giving one may help to expedite return processing. To screen returns for tax fraud and identity theft issues, the Kentucky Department of Revenue utilizes the driver’s license or state issued ID number.

Mississippi

This is according to a statement from Mississippi:This filing season, several state revenue agencies will be collecting more information in an attempt to prevent stolen-identity tax fraud in order to safeguard you and your tax return. If you have a driver’s license or other state-issued identification card, please use it to supply the information that has been required. If you do not have a valid driver’s license or other government-issued identity, your return will not be refused. Providing the information will only aid in the processing of the return as a whole.

Missouri

According to the state of Mississippi, during this tax filing season, several state revenue agencies may need more information from you in an effort to prevent stolen-identity tax fraud in order to safeguard you and your tax return. We ask that you supply the relevant information from your driver’s license or state-issued identity card if you have one. A driver’s license or other government-issued identification will not prevent you from returning the item. If you provide all of the necessary information, it will only expedite the refund process.

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Nebraska

Tax returns in New Mexico are required to include the taxpayer’s driver license or state identification number, the state that issued it, and the issue date, or the word None as part of the New Mexico Taxation and Revenue Department’s security measures to protect taxpayers against identity theft related to refund fraud.

If the Department does not receive this needed information, it deems the returns to be incomplete.

New York

To secure your identity and prevent tax fraud, several state revenue offices are demanding that filers supply their driver’s license or other state-issued identification number when filing their taxes. According to a statement from North Carolina: While supplying this information is strongly suggested, it is not necessary in order to file your North Carolina taxes and is thus not mandatory.

North Dakota

The state of Ohio has issued a statement saying that it, along with other states, would need driver’s license information for the principal taxpayer and spouse (if filing jointly) again in tax year 2019 in an effort to prevent tax fraud involving stolen identities. Those who pay taxes will be required to present information from their driver’s license or other state-issued photo identity card. Taxpayers who do not have a driver’s license or state identification card will be given the opportunity to declare this on their tax return and will still be able to e-file.

Oklahoma

Statement from the State of Wisconsin:The State of Wisconsin is collecting additional information in an attempt to prevent stolen-identity tax fraud and guarantee that your tax refund is sent to you as soon as possible. Please supply the information asked from your driver’s license or other state-issued identity card as soon as possible. Even if you do not have a driver’s license or state-issued identity card, your return will be completed; nevertheless, giving this information will assist us in processing your return more quickly and efficiently.

Keeping your driver’s license number safe could help prevent tax fraud

Driver’s licenses (DLs) in our wallets or purses, which we consider only to be a necessary tool to legally pilot our vehicles from one location to another, are steadily rising in importance, and are now on par with Social Security Numbers in terms of importance as pieces of personal information that must be protected. For the purpose of combatting tax identity fraud, some jurisdictions currently require taxpayers to use DL numbers when filing state tax returns on the electronic filing platform.

According to the AICPA Insights publication published on March 15, 2017, Alabama, New York, and Ohio are the three states that require DL numbers for electronic filing.

It is possible, however, that the regulatory distance between requesting something and making it necessary is small.

Even if a DL number would not have prevented identity theft-related tax fraud in a specific case or cases, authorities often do not want victims of tax fraud to claim to them–or worse, to the news media–that “If we had what that other state has, this would not have happened to me.” Criminals use identity theft to steal money from governments, forcing law-abiding taxpayers to put themselves in the awkward position of having to show that they are not the perpetrators of the crime.

  1. Furthermore, it causes delays or disruptions in the receipt of properly entitled returns from the government.
  2. There is yet another vicious circle in the world of identity theft and protection: the more precious DL numbers become to criminals, the more they must be safeguarded, and the more they are protected, the more valuable they become to criminals.
  3. The Internal Revenue Service (IRS) has made significant progress in recent years in combating identity tax fraud, which happens when someone who is not the taxpayer receives a refund based on a bogus tax return submitted using stolen identities.
  4. According to CBS News, the number of people who have been victimized by tax identity theft has decreased to 377,000 in 2016, compared to 766,000 in 2014.

In part, DL numbers are discussed on the IRS website in a question-and-answer page on 2017 security protections that is geared toward fighting identity theft. Here’s an illustration:

  • We no longer think of our driver’s licenses (DLs) as just a necessary tool for legally driving our vehicles from one location to another
  • They are quickly rising in importance to be on par with Social Security Numbers in terms of importance as pieces of personal information that must be kept safe and confidential. For the purpose of fighting tax identity fraud, some jurisdictions currently require taxpayers to provide DL numbers when filing state tax forms online. Is it possible that the federal government will follow suit soon after that? DL numbers are required for e-filing in Alabama, New York, and Ohio, according to the AICPA Insights publication published on the 15th of March, 2017. Use of the number is requested but not required by the states of California, Kansas, Louisiana, New Jersey, Pennsylvannia, Virginia, and Wisconsin. From the point of asking something to the point of making it necessary, however, it might be a short regulatory distance. Following the lead of one state, others are more likely to do the same as a kind of self-defense. Even if a DL number would not have prevented identity theft-related tax fraud in a specific case or cases, authorities often do not want victims of tax fraud to complain to them–or worse, to the news media–”If we had what that other state has, this would not have happened to me!” Criminals use identity theft to steal money from governments, forcing law-abiding taxpayers to put themselves in the awkward position of having to show that they are not the perpetrators of the crimes. Besides that, it causes delays or disruptions in the delivery of government reimbursements to which they are properly entitle. DL numbers are now being treated with the same level of security concern as Social Security Numbers, which means that people and tax preparers are increasingly being warned to do so. This results in another another cyclical scenario in the context of identity theft and protection: the more precious DL numbers become to criminals, the more the numbers must be safeguarded, and the more the numbers are protected, the more valuable they become to criminals, and so on. Even while the Internal Revenue Service does not require DL numbers for e-filing at this time, it would not be surprising if this were to change in the near future as part of an ongoing effort to protect taxpayers from identity theft criminals. With identity tax fraud, which occurs when someone who is not the taxpayer receives a refund on the basis of a false return submitted with stolen identification, the Internal Revenue Service has made significant progress in the previous several years. It is possible that some of this success may be attributed to internal IRS initiatives, while others can be attributed to collaboration between the IRS, state governments, tax preparers, and allied organizations. Tax identity theft victims decreased to 377,000 in 2016, according to CBS News. This is a decrease from 766,000 in 2014. A recent revelation stated that last year the Internal Revenue Service prevented about one million false tax forms from being submitted that would have stolen around $6.6 billion from the United States Treasury if they had been submitted. In part, DL numbers are discussed on the IRS website in a question-and-answer page on 2017 security enhancements aimed at combatting identity theft. Take the following as an illustration.

When filing your federal tax return, you do not need to include your driver’s license number. However, some jurisdictions will be experimenting with novel techniques in an effort to better safeguard you from identity thieves. When you are filing your state tax return, certain states may need you to provide extra identifying information, such as your driver’s license number, to verify your identity. Because identity thieves may already know your name and Social Security number, but may not have your driver’s license number, this will add another layer of security to your overall defense.

The ball has already started rolling in terms of DL numbers being considered as personal and protected information, and it is not going to stop rolling.

In all likelihood, you’ll be forced to do so at some point.

Fraud, Identity Theft, and Security are some of the terms used to describe these crimes.

Driver license requirement for taxpayers

The state of New York mandates that you submit the information from your driver’s license or non-driver identification card on your personal income tax return if you use software to create your (and your spouse’s, if applicable) return. This is applicable to both you and your spouse, if you have one. Because New York State does not permit tax preparation software to retain driver license information, you must input the information each tax season. This rule applies to all driver licenses and non-driver identification cards from any state, including Washington.

  • The driver license or non-driver ID number
  • The issuing state
  • The issuance date
  • The expiration date
  • And the first three characters of the document number (for licenses and non-driver IDs issued by the State of New York only)
  • And the date of birth (if applicable).

Alternatively, if you or your spouse do not have a driver’s license or non-driver ID, you can specify this inside the program to meet this criteria as well.

IDs and documents

We accept the information on your most current driver’s license or non-driver ID card as valid identification. We will accept your return regardless of whether your ID is current or expired.

How to locate ID and document numbers

The document numbers for New York State driver licenses and non-driver IDs are made up of either 8 or 10 alphanumeric characters, depending on the kind of license or ID (we only require the first three characters). Sample Photo Documents is a page maintained by the New York State Department of Motor Vehicles that shows the normal location of document numbers on New York State-issued licenses and identification cards.

Why we want this information

As part of our fraud and identity theft protection measures, we will utilize your driving license and non-driver ID information to verify your identity.

Extensions

The Did not give IDbox can be checked if you do not have access to your information when you file your extension request.

When you subsequently e-file your return, you must include the information from your driving license or non-driver ID.

Compliance

According to New York State law, you must give this information for both you and your spouse (if applicable).

If you don’t include your ID information

We use your ID information to assist us in validating your identification; if we are unable to authenticate your identity, your refund may be subject to delay.

If you have an out-of-state ID

While presenting a legitimate out-of-state identification card, you should not suffer any processing delays as a result of your identification card.

Personal tax question. Tax program request for driver’s license OR may delay or reject your return

I was working my way through the tax return using the HRBlock application when I came across this, which required me to choose one of the options. The following bold content is taken directly from the program: In order to prevent tax return fraud using stolen identities, the Internal Revenue Service (IRS) and several states are asking more information during 2018 filing season, including state identification information. If you omit any of these information, it may cause a delay in the processing of your tax return, or it may result in your return being denied.

  • 1.
  • any other state-issued identification 3.
  • I don’t want to submit my driver’s license or IDSAY information.
  • The following was discovered in February 2017 about this issue after I adjusted my search keywords and language.
  • However, it looks that compliance is going towards the federal level, or that our program anticipates that we will be submitting at the state level as well.
  • Is this a request made by Turbo-Tax or another tax software program as well?
  • Regards, Catch
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Three Things You May Need In Order To E-File Your Tax Return

Protective measures are being put in place by the Internal Revenue Service and some states to fight tax-related identity theft and refund fraud ahead of the 2016 tax filing season, which began Tuesday. However, providing more information to authenticate your identity and delays in processing refunds may be required to combat fraudulent returns. From 2011 to October 2014, fraudulent refunds totaled $5.8 billion, and these measures are important to reduce this figure. You should keep the following points in mind if you plan to submit your federal or state income tax return electronically.

  1. Certain significant payroll service providers, such as ADP and Paychex, have collaborated with the IRS to add a 16-digit verification code on some Form W-2s.
  2. If the field is already filled in, the IRS will request that preparers input the code.
  3. In order to evaluate the code’s capacity to check the legitimacy of W-2 data during this filing season, it is only being utilized for this filing season.
  4. In some states, you may be required to provide your driver’s license number in order to file.
  5. In the majority of states, supplying a driver’s license number is entirely optional.
  6. There may be some problems to sort out as the IRS, states, and tax software vendors work out the quirks of these new rules.
  7. Taxpayers who have been victims of tax-related identity theft will receive an Identity Protection PIN (IP PIN) in the mail from the IRS.
  8. Due to an error in the year mentioned on the IP PIN letters, some taxpayers have received them.
  9. The IP PIN is valid for use on individual tax returns filed in 2016.

At this time, the IP PIN program is only available to taxpayers who have been victims of tax-related identity theft, taxpayers who filed federal returns as residents of Florida, Georgia, or the District of Columbia in the previous year, and taxpayers who have received an IRS letter inviting them to “opt-in” to receive an IP PIN in the future.

Driver’s license information now required on some state e-filed returns

Paul Bonner contributed to this article. It is becoming increasingly clear to tax return preparers that several state income tax returns for 2016 require information from a taxpayer’s driver’s license or state-issued identity card before the returns can be e-filed. Although driver’s licenses and state identification cards are not required for federal returns, the National Security Summit sponsored by the Internal Revenue Service, state taxing authorities, the tax software industry, and other stakeholders recommended using driver’s licenses and state identification cards as an additional factor in authenticating taxpayers’ identities to deter fraudulent electronically filed returns last year.

This information is requested by a number of states.

According to a website maintained by the New York State Department of Taxation and Finance, taxpayers who have been issued a driver’s license or state-issued identification card from any state in the United States are now required to include with an e-filed New York state return the license or card’s ID number, issuing state, issuance date, and expiration date.

  • Previously, providing the requested information was entirely optional.
  • Taxpayers who do not have a driver’s license or a state-issued identity card can declare this by ticking a box on the tax return.
  • A spokeswoman for the New York Department of Taxation and Finance verified practitioners’ allegations that taxpayers who hold a license or state ID were not permitted to fail or decline to disclose the information of their license or state ID on an e-filed return.
  • It is not necessary to provide this information on a paper-filed return because it does not show on a copy of the return.
  • A driver’s license number is required for e-filed Alabama income tax returns in 2016, according to the Alabama Department of Revenue’s web site.

If the department is able to locate a match, the return is “rated higher for identification confidence.” If the department does not discover a match, it will use various measures “to attempt to identify whether or not the true taxpayer submitted the return.” If you submit your tax return using a state-run filing portal, commercial tax preparation software, or both, some states offer you a personal identification number (PIN) that you must use in conjunction with your driver’s license or state ID number to complete the transaction.

In Illinois, for example, a driver’s license or state identification card issued by the state is required in order to receive a PIN, and taxpayers may (and first-time filers must) e-file using their driver’s license or state identification card information.

Though it is not necessary to provide a driver’s license or state identification number on federal returns as previously stated, IRS Publication 1345,Handbook for Authorized IRS e-file Providers of Individual Income Tax Returns, states that electronic return originators (EROs) must inspect and compare a valid government picture identification with the applicant when verifying taxpayers’ identities for the purpose of conducting an in-person signing of an electronic return.

  • In contrast, preparers who deal with taxpayers from a distance, particularly those who are not intimately acquainted with them, may not have this information on file and may have to obtain it from them, increasing the amount of time it takes to file a tax return.
  • “It’s a significant issue,” said Howard Arem, a certified public accountant at KleinArem Associates LLC in Jericho, New York.
  • Smith added that some clients have expressed skepticism about the possibility that storing driver’s license data with other tax return information may really raise the risk or repercussions of identity theft.
  • Calling a customer to collect the information is also less than ideal, he explained, because the licenses are “difficult to see” and communications, which are frequently made over a cellphone, are less than reliable.

He provided an example from his own firm. It was written down and entered on the return flight, and he hoped the transaction had gone through. — Paul Bonner ([email protected]) works as a senior editor for Tax Advisers.

Bamboozled: Driver’s license? Meet my tax return

Image courtesy of Andrew Harrer-Bloomberg.jpg During the filing of your tax return, you may be requested for your driver’s license number as an additional means of verifying your identification. (Bloomberg photo by Andrew Harrer) When you go to submit your tax returns, you will very certainly be requested to show your driver’s license to the IRS. However, taxpayers in New Jersey are not required to contribute to it, despite the fact that there appears to be some ambiguity on the subject. Many glitches have been included into this new invention, which is intended to reduce the likelihood of false tax returns being submitted in your name.

  1. Let’s take a quick look back in time.
  2. The magnitude of the situation cannot be overstated.
  3. Patricia Svarnas, a spokesperson for the Federal Trade Commission, said that so far the agency had prevented 1.4 million proven identity theft returns totalling $8 billion.
  4. Fraudulent refunds occur when a fraudster uses your personal information to submit a tax return in your name before you do, and they receive a substantial refund as a result.
  5. The government has increased anti-fraud efforts to ensure that returns are authentic, which has resulted in longer waits for legal taxpayers who are entitled to a tax refund.
  6. A driver’s license can serve as an additional layer of identity validation, according to tax agencies and industry associations.
  7. Taxpayer identification and return validity are checked prior to processing, according to the IRS web site, which states that this is done to prevent fraud.
  8. Because some identity thieves may already have your Social Security number and other identifying information, but they may not have your driver’s license number, the IRS described the change as an additional layer of security against identity theft.
  9. It is all up to you.
  10. Some states may seek your driver’s license number for state tax returns since they have the capability of matching state data and assisting with the verification of your identification, according to the IRS.

According to Perone, “While the Division of Taxation does not now have access to driver’s license information, the use of this information in the future will offer the Division with an additional way of validating legal refunds so that they can be granted without further delay.” Because it appears that not all tax software packages are clear on what is necessary and what is not, the driver’s license problem has become a bit confusing as a result of the HICCUPS.

  • The Federation of Tax Administrators, which represents state tax administrations, revealed that practically every state, as well as the Internal Revenue Service, is asking the number, which is not required by law.
  • “The software firms are obligated to request it, but the taxpayer has the option of declining to provide it,” says the author.
  • When asked, they may respond with statements such as “I am not in possession of one” or “I do not wish you to own one.” But how are taxpayers supposed to say no?
  • The driver’s license section in Alabama requires something to be entered by the taxpayer or tax preparer, according to Smith.
  • Some tax preparers in New Jersey have reported to the New Jersey Society of CPAs (NJCPA), an industry association, that some software packages are seeking driver’s license numbers for New Jersey returns despite the fact that license information is not required in the state.
  • However, he cautioned, “that is not to imply that there isn’t the occasional software product out there that does require something.” When we inquired about this, Taxation said that it has also been informed that some tax preparation software may demand information from a driver’s license.
  • Tax experts agreed that this new addition to tax return software is still in the early stages, with changes and modification still being implemented.

Please let us know whether inputting all zeros will result in success.

If you’re asked for your Social Security number and you don’t have one, or if you don’t want to disclose it, you may need to switch to a different application or tax preparer.

It appears that this tax season will be one of trial and error, so please keep us informed, readers.

As Smith explained, “This is a numbers game, and the aim is to properly check the legality of as many returns as possible, so that the remaining resources may be directed on fewer problematic returns.” “Having a driver’s license is a useful piece in that armory,” says the author.

And, perhaps most significantly, this revelation provides significant support for the notion that everyone should keep their driver’s license number confidential.

If licenses are being used to assist in the verification of your identity when you submit your taxes, then that is still more reason to safeguard your driver’s license number.

It’s not a nice sight.

According to Smith, “If you are willing to share your name and Social Security number, as well as your income and all of the other information, which of course you are required to do – sharing your driver’s license is given the same absolute protection as all of your other information.” It is our opinion that using a driver’s license number will allow tax authorities to identify your true identity more quickly – and to identify fake returns filed in your name – that is a positive development.

Have you been taken advantage of?

KPMueller may be followed on Twitter @KPMueller.

Mueller is also the creator of the website NJMoneyHelp.com. Sign up for NJMoneyHelp.com’s weekly e-newsletter to stay up to date on the latest financial news. Please keep in mind that if you purchase something after clicking on one of our affiliate links, we may receive a fee.

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