Should I keep a copy of client’s ID on file?

NY does not allow tax software to carry forward driver license or other ID information to the following year, which suggests that they want preparers to ask to see the most recently issued ID every year instead of working off a saved copy.

As a practical matter, a NYC firm I used to work for scanned every ID to their server and instructed preparers to ask the clients each year if the license info had changed. What happened most often was the preparers entered the info from the scanned ID and only asked the clients for a new expiration date if the old one had expired. Just one example of the firm's typical approach to compliance that motivated me to move on.

/r/taxpros Thread