Requires the use of identification numbers for filing tax documents; provides that individuals must go into a tax preparer's office one time and must show identification to retrieve their permanent number.

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S2423-2013 Actions

• Jan 17, 2013: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

S2423-2013 Memo

BILL NUMBER:S2423

TITLE OF BILL:
An act
to amend the tax law, in relation to requiring the use of identification
numbers for filing tax documents

PURPOSE OF BILL:
To assist in the prevention of identity theft of individuals who
electronically file their taxes.

SUMMARY OF PROVISIONS OF BILL:
Adds a new section 29-a to the tax law, which requires any individual
who electronically files an authorized tax document to obtain an
identification number to use when filing such document. In order to
obtain such number, the individual would be required to appear one
time in person at the professional tax preparer and show government
issued identification.

JUSTIFICATION:
Tax related identity theft is a new and growing form of identity theft.
Identity thieves have stolen millions of dollars by filing fraudulent
returns with names and personal information belonging to other people.
During a four year period, tax return related ID theft more than
tripled - rising from 11,010 complaints in 2005 to 33,774 complaints
in 2009, and that number continues to rise.

According to the IRS, last year 99 million taxpayers filled their
returns electronically. As this number continues to increase,
additional safeguards are needed to protect these filers from fraud
by hackers who have accessed their social security numbers and W-2
information.

LEGISLATIVE HISTORY:
This is a new bill.

FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
None.

EFFECTIVE DATE:
This act shall take effect on the 90th day that it shall have become
law;
provided, however, that effective immediately, the addition, amendment
and/or repeal of any rule or regulation necessary for the
implementation of this act on its effective date is authorized to be
made and completed on or before such date.

S2423-2013 Text

                      S T A T E   O F   N E W   Y O R K
  ________________________________________________________________________

                                    2423

                         2013-2014 Regular Sessions

                              I N  SENATE

                              January 17, 2013
                                 ___________

  Introduced  by  Sen.  ADAMS  -- read twice and ordered printed, and when
    printed to be committed to the Committee on Investigations and Govern-
    ment Operations

  AN ACT to amend the tax law, in relation to requiring the use  of  iden-
    tification numbers for filing tax documents

    THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
  BLY, DO ENACT AS FOLLOWS:


    Section 1. The tax law is amended by adding a new section 29-a to read
  as follows:

    S 29-A. ELECTRONIC FILING OF AUTHORIZED TAX DOCUMENTS;  IDENTIFICATION
  NUMBER.  1. ON AND AFTER JANUARY FIRST, TWO THOUSAND FOURTEEN, ANY INDI-
  VIDUAL WHO ELECTRONICALLY FILES AN AUTHORIZED TAX DOCUMENT SHALL,  PRIOR
  TO  FILING  SUCH  DOCUMENT,  OBTAIN AN IDENTIFICATION NUMBER TO USE WHEN
  FILING SUCH DOCUMENT. SUCH IDENTIFICATION NUMBER SHALL BE MADE AVAILABLE
  AT ALL OFFICES AT WHICH PROFESSIONAL TAX  PREPARERS  PREPARE  TAXES  AND
  FROM THE DEPARTMENT.  INDIVIDUALS WHO ELECTRONICALLY FILE AUTHORIZED TAX
  DOCUMENTS ARE REQUIRED TO RETRIEVE THEIR IDENTIFICATION NUMBER IN PERSON
  AND  SHALL SHOW GOVERNMENT ISSUED IDENTIFICATION TO THE PROFESSIONAL TAX
  PREPARER TO RECEIVE SUCH NUMBER. IDENTIFICATION NUMBERS SHALL BE  PERMA-
  NENT  AND  SHALL  BE  USED FOR ALL TAX FILINGS. THE INDIVIDUAL NEED ONLY
  APPEAR ONE TIME TO RECEIVE THEIR IDENTIFICATION NUMBER.  THE  DEPARTMENT
  IS  HEREBY  AUTHORIZED  AND DIRECTED TO PROMULGATE RULES AND REGULATIONS
  NECESSARY TO CARRY OUT THE PROVISIONS OF THIS SECTION, AS  WELL  AS  THE
  MANNER  AND  FORM  IN  WHICH APPLICATION FOR SUCH IDENTIFICATION NUMBERS
  SHALL BE MADE. FOR PURPOSES OF THIS SECTION, THE  TERM  "AUTHORIZED  TAX
  DOCUMENT"  SHALL  HAVE THE SAME MEANING AS SET FORTH IN PARAGRAPH ONE OF
  SUBDIVISION (A) OF SECTION TWENTY-NINE OF THIS ARTICLE.
    S 2. This act shall take effect on the ninetieth day  after  it  shall
  have  become  a  law; provided, however, that effective immediately, the
  addition, amendment and/or repeal of any rule  or  regulation  necessary
  for  the  implementation of this act on its effective date is authorized
  to be made and completed on or before such date.

   EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                        [ ] is old law to be omitted.
                                                             LBD06088-01-3