To verify identity, the IRS typically asks questions based on tax returns, such as confirming your SSN/ITIN, birth date, filing status, address, and specific figures from the current and prior-year tax returns. They may also ask for information from forms like W-2s or 1099s, and require reference numbers from any IRS letters received.
Be ready to verify your identity when calling the IRS
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.
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.
The IRS scrutinizes tax returns to look for signs of fraudulent activity. One of the most common tax scams is another individual using your name and Social Security number to file a fraudulent tax return. If you were a potential victim of tax fraud, you may receive an ID verification letter.
Your refund
It may take up to 9 weeks to process your return after you verify it.
One-time forgiveness, officially known as First-Time Penalty Abatement (FTA), is an IRS program that allows qualified taxpayers to have certain penalties removed from their tax accounts.
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.
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 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.
Note: To be legally acceptable, all identification must be valid. Expired I.D. is not acceptable. By law, you should not ask for the Ontario Health Card as identification.
If your SASSA identity verification status reads 'Unsuccessful' or 'Identity Verification failed,' it means that the information you provided when you registered does not match your information with the Department of Home Affairs.
If you can't verify online
Call us at the phone number on your notice. The number is for identity and tax return verification only. Other tax information, such as refund status, is not available.
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.
Call to schedule your appointment ahead of time. Bring these items with you: A current government-issued photo ID. Two original forms of ID, including a current government-issued photo ID and, if filed, a copy of the tax return for the year in question.
The IRS uses a combination of automated and human processes to select which tax returns to audit. 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 "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.
Who must file. Generally, any person in a trade or business who receives more than $10,000 in cash in a single transaction or in related transactions must file a Form 8300. By law, a "person" is an individual, company, corporation, partnership, association, trust or estate.
To avoid the 22% tax bracket (or any higher bracket), focus on reducing your taxable income through strategies like maxing out 401(k)s and HSAs, deferring bonuses, tax-loss harvesting, smart charitable giving, and strategic asset location, understanding that higher rates only apply to income within that bracket, not your entire income.