Beginning with 2016 personal tax returns, some states are requiring various types of information found on a taxpayer’s driver’s license or state identification card before the return can be e-filed. Similar information is not required on any federal returns or paper-filed state tax returns, but the added authentication is part of a growing movement to combat tax ID fraud.
 
Generally, a taxpayer may have the option to check a box indicating he or she does not have a driver’s license or state ID card. While there is no specific guidance at this time, it seems likely that the return still will be e-filed, but other identity verification measures may be requested or there could be added delays before the return is processed.
 
Alabama, New York and Ohio have already announced they are making driver’s license information a requirement for e-filing. Some states, including Michigan, California, Kansas and Wisconsin, request driver’s license information but do not require it; although, they suggest that providing the information may speed up return processing time. It is highly likely that most states will require this type of information in the near future.
 
Cohen & Company clients will be contacted if the required information is not already on file. If you have any questions, please contact a member of your service team.
 
Cohen & Company is not rendering legal, accounting or other professional advice. Any action taken based on information in this blog should be taken only after a detailed review of the specific facts and circumstances.