Entering Taxpayer Authentication and Theft Protection PIN in Lacerte

 In an effort to better protect you from identity thieves, some states will be trying new approaches. Some states may ask for additional identification information, such as your driver's license number, when you are preparing your state tax return. This will be another layer of protection because identity thieves may already have your name and Social Security number, but perhaps not your driver's license number. States requesting this information have the ability to match driver's license information and other identifying records to help confirm your identity. Note: Because this information is used to verify identity, this information does not proforma from year to year.

The Federal return requires an 'identity verification level' to be assigned to each electronic return. The requirement is set when the Taxpayer Identity Verification is selected. When 'Identity Not Verified' or 'State-Issued ID' is indicated, additional inputs are Not required for Federal e-file.

The identity verification level is determined by the Taxpayer Identity Verification selection made in Screen 1, Taxpayer  Authentication section, and must be marked to calculate the appropriate identity verification level.

Identity Not Verified (When selected, ID Number is Not Required)
In Person - Valid Government Picture ID (When selected, ID Number is Required)
Remote - Valid Government Picture ID or Financial Utility Account Number (When selected, ID Number is Required)

Financial or utility account number examples include: checking account, savings account, utility account, loan, credit card, or tax identification number.