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.
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 January 1, 2012; 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.
STATE OF NEW YORK ________________________________________________________________________ 5319 2011-2012 Regular Sessions IN SENATE May 5, 2011 ___________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 TWELVE, ANY INDIVID- UAL 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 DOCU- MENTS 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 January 1, 2012; 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. LBD11257-02-1