Tax & Accounting Blog

IRS Identity Authentication Initiative – State Requirements

Accounting Firms, CS Tax & Asset Management Solutions, State & Local Tax February 4, 2016

On June 11, 2015, the IRS issued an announcement regarding the collaborative effort to combat identity theft and tax refund fraud. Thomson Reuters supports and is participating in this initiative.

For the 2015 tax season, the IRS will not reject a return if this information is not included. Refer to state-specific User Bulletins or the State Electronic Filing Guide, or contact your state revenue agency, for more information on the identity authentication information required by certain states.

As of February 11, 2016, Alabama is the only state agency that requires that a driver’s license or state-issued identification card number be provided with the electronic file. If this information is not provided, the tax return will be rejected.

More Information?

Screen IDAuth is now available in the Electronic Filing folder in the 1040 application. This screen contains fields to enter a driver’s license or state-issued ID card number. This information will be included in the electronic file to assist the IRS in determining the identification of the taxpayer.

For more details, see the IRS announcement released on June 11, 2015.