IRS Letter 5071C is not an audit, but rather a request to verify your identity to prevent tax fraud. It is sent when the IRS suspects someone else filed a tax return using your name and Social Security number. You must respond to verify your identity online or by phone, otherwise, your refund will not be processed.
While it might feel concerning, it's not necessarily a sign of fraud or an audit. It simply means the IRS wants to confirm that you, not someone else, filed your tax return before they issue your refund. This letter is part of the IRS's identity protection measures. Quick action can help avoid refund delays.
The IRS may send these identify fraud letters to taxpayers:
Letter 5071C, Potential Identity Theft with Online Option: This tells the taxpayer to use an online tool to verify their identity and tax return information. If the taxpayer didn't file, they can let the IRS know with the online tool.
If the IRS suspects your tax return is fraudulent, you might receive a 5071C Letter asking you to verify your identity.
Should your account be selected for audit, we will notify you by mail. We won't initiate an audit by telephone. Assistance is available to help you understand the letter/notice received: Understanding your IRS notice or letter.
Follow the letter's specific instructions on how to verify your identity and the tax return. Letter 5071C, Has an option to use the online verification tool to verify your identity and the tax return. This is where you can tell the IRS if you did or didn't file the return.
Once we verify your identity and confirm you submitted the tax return, we'll continue processing your return. It may take up to 9 weeks to process.
When a taxpayer's account raises identity theft concerns, the IRS may flag it for further investigation. Some common identity theft indicators include: a. Inability to verify the taxpayer's identity.
The IRS sends out letters 5071C or 4883C that require taxpayers to verify identity before the IRS will continue processing a tax return. The letter details the process that the IRS requires to validate their identities. See Understanding Your 5071C Letter and Understanding Your 4883C Letter for more information.
Your refund
It may take up to 9 weeks to process your return after you verify it.
What is a 5071C letter? The IRS sends a 5071C letter when it receives a tax return with your name and tax identification number, but believes the return to be fraudulent. A Letter 5071C will ask you to complete an online identity verification process to confirm your identity.
Audit odds are low, but the IRS uses automated programs to identify issues. Common red flags include unreported income and excessive deductions. High earners and digital currency users may face extra scrutiny. Maintaining strong records and specifical documentation can help prevent issues.
Use Where's My Refund, call us at 800-829-1954 (toll-free) and use the automated system, or speak with a representative by calling 800-829-1040 (see telephone assistance for hours of operation). If you filed a married filing jointly return, you can't initiate a trace using the automated systems.
The CP05 notice doesn't say this in plain language, so people often don't know what is going on. They just know that the IRS said it would be 60 days, but usually, it has been much longer with no answer from the IRS about what the problem is or why the IRS isn't giving the person their refund.
The IRS $600 rule refers to a change in reporting requirements for third-party payment apps (like Venmo, PayPal) for taxable income from goods and services, where platforms must send a Form 1099-K if you receive over $600 in a year, intended to capture gig economy/side hustle income, though delays and phased implementation have adjusted the timeline, with current rules for 2024 using a higher threshold ($5,000) before fully phasing to $600 for future years, but remember all taxable income, regardless of form, must always be reported.
Not at all. It's not an audit. It doesn't mean you did anything wrong. This is just the IRS trying to protect you from identity theft and make sure it's really you filing your return.
Letter 5071C, Potential Identity Theft during Original Processing with Online Option – Provides online and phone options and is issued most widely. Letter 4883C, Potential Identity Theft during Original Processing – Provides a phone option.
Not reporting all of your income is an easy-to-avoid red flag that can lead to an audit. Taking excessive business tax deductions and mixing business and personal expenses can lead to an audit. The IRS mostly audits tax returns of those earning more than $200,000 and corporations with more than $10 million in assets.
While the IRS strives to issue most refunds within 21 days of receiving an electronically filed return, 2025 has seen a noticeable uptick in refund delays. Understanding the reasons behind these delays can help taxpayers set realistic expectations and avoid unnecessary stress.
The IRS performs audits by mail or in person. The notice you receive will have specific information about why your return is being examined, what documents if any they need from you, and how you should proceed. Once the IRS completes the examination, it may accept your return as filed or propose changes.