Taxing Authorities are Fighting Fraud by asking for your Driver’s License

The IRS and state tax authorities are implementing new safeguards to protect your identity.  The IRS safeguards are currently aimed at tax returns that are prepared using tax software.  For example, there may be a 16-character code found on your Form W-2 to help with verifying the accuracy of your data.  This code will appear on approximately 50 million Form W-2s.

Some state taxing authorities have begun asking for your driver’s license number when filing electronically.  While submitting your driver’s license number is optional in some states, it is mandatory in others, such as, New York, Ohio and Alabama.  If you do not wish to file electronically, you can send your return in a hard copy format.

If you are using a professional tax preparer, such as Cross Border Tax & Accounting, your preparer may need to ask for your driver’s license information if they do not already have that information on file.

One big question that we must wait and see is whether by requiring driver’s license information along with tax information, will lead to more or less identity theft.

—  Dale A. Walters ( is the Chairman of the Board of KeatsConnelly.

Posted in Cross-Border Blog
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