NEW* – I am having second thoughts about this post. It looks like IRS only requires photo IDs when the taxpayer(s) electronically sign (e.g. a signature pad) and not when their signature(s) are handwritten. Hopefully, IRS will clarify the publication.
*Beginning of original post*
Russ Fox, E.A. has an excellent post (Thanks to Joe Kristan of Roth & Company, PC for the link) on some of the issues around the new version of IRS Publication 1345 (PDF) Handbook for Authorized e-file Providers of Individual Income Tax Returns.
Essentially, at the end of April 2014 IRS revised the handbook to require tax professionals to check a government issues photo IDs for all in-person electronic filing and recommends we run a credit check or similar verification.
For remote clients we must “Verify that the name, social security number,
address, date of birth and other personal information on record are consistent
with the information provided through record checks with the applicable
agency or institution or through credit bureaus or similar databases.”
No more taking the form home for your spouse to sign, we have to see them and their government issued photo ID. As both Mr. Fox and Mr. Kristan note, the easiest solution is to have the taxpayer to elect out of electronic filing.