The IRS uses ID.me for online identity verification. This process requires a photo of a government-issued ID, like a driver's license or passport, and a self-taken video selfie. This is used to access online accounts, transcripts, or verify tax returns to prevent fraud.
You can verify your identity online through the IRS Identity Verification Service website or by phone using the number provided in the 5071C Letter. To verify your identity, you'll need both your previous and current year's tax returns, along with all supporting forms and schedules.
Bring the following identity verification documents to your appointment: A valid federal or state government-issued picture identification, such as a driver's license, state ID, or passport.
Your refund
It may take up to 9 weeks to process your return after you verify it.
Overview. Letters 5071C, Potential Identity Theft During Original Processing with Online Option, is mailed to taxpayers to notify them that the IRS received an income tax return using your name, Social Security number (SSN) or individual taxpayer identification number (ITIN).
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.
Social Security numbers and birth dates for those who were named on the tax return. An Individual Taxpayer Identification Number letter if the you have one. Your filing status. The prior-year tax return.
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.
The IRS asks you to verify your identity primarily to stop fraud, often because someone filed a tax return using your Social Security Number (SSN) without your permission, or due to data discrepancies, a new address, or a previous data breach involving your info. Verification ensures you are the legitimate taxpayer before they process your return, issue refunds, or grant access to your online account, protecting you from identity theft.
The IRS issues refunds only on business days. However, some banks may post deposits on Saturdays if funds are received late on a Friday.
The most common way to verify identity in person is to see the individual and a government-issued photo ID card, such as a driver's license, state ID card, or passport. This method combines the “something you have” and “something you are” factors.
The IRS proves Head of Household (HoH) status by verifying you meet three tests: being unmarried, paying over half the cost to maintain a home, and having a qualifying person (like a child or relative) live with you for over half the year, using records like utility bills, rent receipts, mortgage statements, grocery bills, and school/medical records to prove expenses and residency.
The identity verification process from the IRS can be triggered on a random basis, or it could be due to suspicion that a tax return with your name on it is potentially the result of identity theft.
And annoyingly, there's no way of finding out the reason for the delay until the IRS is ready to tell you. However, there is also no need to worry. Oftentimes the delay is simply resolved and your refund is processed as expected – albeit later than you'd hoped.
Self–Service: The fastest method to verify; usually takes 5-10 minutes. For step-by-step instructions, visit Verifying your identity with ID.me Self-Service. Video call: You will upload your document, then join a quick video call.
We sent you a CP5071 series notice because we need you to verify your identity and the return: If you didn't file a return: Verify with us. You may be the victim of identity theft. If you did file a return: Verify so we can continue processing your return.
Bring these items with you:
The IRS "10k rule" primarily refers to the requirement for businesses and financial institutions to report cash transactions over $10,000 by filing Form 8300 (for businesses) or a Currency Transaction Report (CTR) (for banks), under the Bank Secrecy Act. This rule helps combat money laundering, tax evasion, and terrorist financing, requiring reporting for single transactions or related transactions totaling over $10,000 in cash within a year, with penalties for non-compliance.
The "20k rule" refers to the traditional IRS threshold for reporting income from payment apps and online marketplaces on Form 1099-K: over $20,000 in gross payments AND more than 200 transactions in a calendar year. While a law (the American Rescue Plan) temporarily lowered the threshold to $600, recent legislation, the One Big Beautiful Bill Act (OBBBA) (OBBBA), has reinstated the $20,000/200-transaction rule for tax years starting in 2025, providing relief for casual sellers and gig workers.
The IRS receives copies of your W-2s and 1099s, and their systems automatically compare this data to the amounts you report on your tax return. A discrepancy, such as a 1099 that isn't reported on your return, could trigger further review. So, if you receive a 1099 that isn't yours, or isn't correct, don't ignore it.
A government-issued photo ID (U.S. driver's license, state ID, U.S. passport, or U.S. passport card) Your Social Security number.
It's about protecting you from scammers who may try to set up an account in your name to access your information and benefits. After you verify your identity, you won't have to do it again for that account unless you lose access to your account's multifactor authentication method or need to recreate your account.