New York State Requires Driver’s License Information for E-Filing

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Cybersecurity is a big concern for everyone, including the federal and state taxing authorities. In an effort to further cut down on fraud associated with income tax returns, New York State now mandates the disclosure of a taxpayer’s driver’s license or state identification information.

For security purposes, the data will not appear on the face of printed tax returns, but will be used instead in the authentication header section of electronically filed returns. While this disclosure was voluntary in the 2015 tax year, it is mandatory for 2016. Therefore, cooperation between tax advisors and clients in both asking for and providing such information is crucial.

  • New York is requiring the following disclosures on all NYS tax returns, resident and nonresident:
    • license or ID number;
    • issuing state;
    • issue date;
    • expiration date; and
    • document number (NYS-issued licenses and IDs only; see next bullet point).
  • For NYS-issued licenses or IDs – The “document number” for either the prime taxpayer or spouse must be disclosed. The document number is specific to NYS IDs and is typically found in the bottom right corner on the front, or on the back of the ID.

In cases where the taxpayer does not have a driver license or state-issued ID, there is an option to indicate that they don’t have either one. This will fulfill the disclosure requirement and should not prevent the taxpayer from e-filing his/her return.

Additional information can be located in the Driver License Requirement for Tax Year 2016 (Overview and Frequently Asked Questions) or search the New York State Answer Center for questions regarding the driver’s license requirement.

For concerns or to discuss the new requirement, please reach out to a member of Withum’s State and Local Tax Services Team at taxbriefs@withum.com.

Russolillo-Ray Raymond G. Russolillo, CPA/PFS, CFP®, CAP®, Partner
T (212) 829 3214
rrussolillo@withum.com

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To ensure compliance with U.S. Treasury rules, unless expressly stated otherwise, any U.S. tax advice contained in this communication is not intended or written to be used, and cannot be used, by the recipient for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code.

New York State Requires Driver’s License Information for E-Filing

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