Well a fellow FTer said in a thread that the ID was considered invalid so s/he was flagged as "no id", then the TSO found his/her license during secondary and asked the FT'er why s/he lied about not having ID.

I am always honest with my intentions at stores and hotels when i insist on not showing my ID so i wouldn't lie to TSA either, but stores/hotels don't search my stuff and find my ID anyway.