New York State Department of Taxation and Finance: Driver license requirement for tax year 2017

The New York State Department of Taxation and Finance is reminding tax preparers the following:

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If you use software to prepare a client’s personal income tax return for tax year 2016 or 2017, you must include the client’s driver license or state-issued ID information on their return. If the client has a spouse, you must include the spouse’s information as well.

Here’s exactly the information you need to provide from the ID or document:

• the driver license or state-issued ID number;
• the issuing state;
• the issue date;
• the expiration date; and
• for tax year 2017—New York State-issued licenses and IDs only—the first three characters of the document number.

This requirement:

• applies to driver licenses or state-issued IDs from any state. 
• does not apply to extensions and estimated tax payments.

If your client does not have a driver license or state-issued ID (or is deceased), you can indicate that on the return to fulfill the ID requirement.

Note: For purposes of this verification requirement, state-issued ID refers specifically to a non-driver ID, generally issued by a state Department of Motor Vehicles.

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IDs and documents

What we accept

We accept information from your client’s most recent driver license or state-issued ID. The ID can be active or expired.

How to locate ID and document numbers

The document numbers for New York State driver licenses and state-issued IDs consist of either 8 or 10 alphanumeric characters (we only require the first three characters).

To view the standard placement of document numbers on New York State-issued licenses and IDs, visit the New York State Department of Motor Vehicles at Sample Photo Documents.

Why we want this information

We will use the driver license and state-issued ID information as additional verification to protect taxpayers from fraud and identity theft.

Requirements

Who must provide ID or document information

If you (or your client) use a tax software product—approved by New York State—to file a personal income tax return, the software will prompt you to enter driver license or state-issued ID information. Tax professionals as well as taxpayers who e-file are required to provide this information.

What you must provide

You must provide the following information from your client’s ID:

• the driver license or state-issued ID number;
• the issuing state;
• the issue date;
• the expiration date; and
• for New York State-issued licenses and IDs only, the first three characters of the document number.

If you need an extension

If you need to e-file an extension and haven’t had time to gather all your client’s information, you may check the Did not provide ID box on the extension. However, when you subsequently e-file the return or credit claim form, you must include driver license or state-issued ID information.

Compliance

If your client won’t disclose their ID information

If your client refuses to provide their information, you may check the box to indicate your client does not have an ID. You should keep documentation to prove you used due diligence to obtain the information and your client refused.

It may help encourage compliance if you remind your client that New York State law requires them to provide ID information, and that we request it to help protect them from fraud.

Software

What software you can use

You can use any New York State-approved software product to e-file. All New York State-approved software:

• prompts you to enter your client’s driver license or state-issued ID information, and 
• has an option for a client who doesn't have an ID.

Processing time

If you don’t include your client’s ID information

If your client’s return doesn’t include their ID information, that alone will not cause a delay. However, we use their ID information as an additional way to validate their identity; if we can’t validate your client without their ID information, their refund may be delayed.

If your client has an out-of-state ID

As long as your client’s information is up to date, they should not experience a processing delay because they have an out-of-state ID.