Ohio tax notes: ODT clarifies on driver’s license/ID number requirement

Written on Jul 31, 2020

OSCPA staff report

Last week we reported that the Ohio Department of Taxation will require a driver’s license or state ID number on electronic returns for Tax Year 2016.

That story drew a number of reader comments, and suffice it to say most weren’t in favor of the move. We also received member feedback that the license or ID issue date, expiration date and state of issuance would also be required, so we checked with ODT. Spokesman Gary Gudmundson confirmed that is the case, and all information that was optional last year will be required.

Further, he said, this change was not initiated by the Ohio Department of Taxation. This new requirement is part of a FTA/eStandards mandate. Every state that uses the IRS MeF system must get driver’s license and ID information because it is part of the common field for all states.

ODT cross checks federal filers

Also this past week, ODT said it is sending notices to taxpayers who have not filed an Ohio individual income tax return based on information provided by the IRS on taxpayers who filed a federal return using an Ohio address. ODT presumes those people are Ohio residents and therefore required to file in the state. Learn more on this ODT information sheet (PDF).

K-1 coming to Ohio

Finally, the Ohio Department of Taxation announced it is introducing form Ohio IT K-1 to help practitioners and taxpayers in the tracking of income, adjustments, credits and apportionment through multi-tiered pass-through entity ownership chains. This form should be used as a supplement to all income taxes administered by ODT in lieu of any privately created “Ohio K-1 equivalent.” Pass-through entities should complete the form for each investor and include it when filing the IT 1040 (individual investors), IT 4708 (pass-through entity investors), or IT 1041 (fiduciary investors). Download the form at www.tax.ohio.gov/Forms.aspx.