Starting in tax year 2015, the IRS and most states require or strongly suggest identify verification in order to protect taxpayers from identity theft and tax fraud. This verification is completed on the Identify Verification Worksheet on the Federal return so the information will flow to any state returns.
Some states have additional requirements that this information must be entered each year to show that verification was done. Due to this requirement, some specific state data may not transfer year-over-year and will need to be manually entered each year.
Follow these steps to enter the Identity Verification Worksheet in ProSeries:
- Open the client return.
- Go to the Federal Information Worksheet.
- Locate the Part I - Personal Information section.
- Click the button located immediately below the taxpayer's address to QuickZoom to the Identity Verification Worksheet.
- If the taxpayer or spouse doesn't have a driver's license or state ID, check the applicable Taxpayer or Spouse box in the Taxpayer/Spouse did not provide a driver's license or state id field.
- Scroll down to the Additional Verification Information section.
- In the Identity Verification Method section, mark one checkbox that best describes how the client's identity was verified.
- In the Documents Used to Verify Primary Taxpayer Identity section, you must select one of the following checkboxes:
- Driver's license - requires completion of the Driver's License Detail.
- State issued identification card - requires completion of the State ID Card Detail.
- If the return is filing with a Married Filing Jointly filing status, complete the Documents Used to Verify Spouse Identity section by following the same steps used for the taxpayer.
- Save the client return.