5071C letters are meant to prevent identity theft by requiring manual identity verification. The fact that you've never filed jointly before is one of several ``red flags'' about a return that make it more likely to be selected for the id verification process.
The IRS scans tax returns for possible fraud. If a tax return is flagged as suspicious, the agency will pull it for more review. Then the IRS will send the taxpayer a letter notifying them of potential ID theft. The suspicious tax return won't be processed until the taxpayer responds to the letter.
The 5071C letter means that the IRS has received your return, but needs more information from you to verify your identity. You can do either of the following: Go to Identity Verification Service and follow the online instructions. Call the IRS toll-free on 800-830-5084 for Identity Verification.
The IRS needs to verify your identity primarily to protect against identity theft and fraud. Here are some key reasons: Prevent Fraud: Identity verification helps ensure that tax refunds and benefits are issued to the rightful individuals, reducing the risk of fraudulent claims.
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.
Self–Service: The fastest method to verify; usually takes 5-10 minutes. For step-by-step instructions, visit Verifying your identity with Self-Service. Video call: You will upload your document, then join a quick video call. For step-by-step instructions, visit Verifying with a short video call.
It may take up to 9 weeks to receive your refund or credit any overpayment to your account. However, if we find other problems, we'll contact you again and this may delay your refund. You may check the status of your tax refund using Where's My Refund? or the IRS2Go mobile app after 2 to 3 weeks.
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.
A: To verify your identity with ID.me, you'll need to provide a photo of an identity document such as a driver's license, state ID or passport. You'll also need to take a selfie or choose to video chat with a live ID.me agent.
If the IRS decides that your return merits a second glance, you'll be issued a CP05 Notice. This notice lets you know that your return is being reviewed to verify any or all of the following: Your income. Your tax withholding.
If you see code 570, that means that there is a delay in processing your return. This doesn't necessarily mean that there is anything wrong with your return, but you may receive a request for additional information – including a request to verify your identity.
You can access the IRS website through the previous link to review information regarding the letter you received and to access the secure IRS Identity Verification for IRS Letter Recipients webpage or call the number provided in your 5071C letter.
This is apparently a common 5071C letter, where the IRS wants you to verify your identity, because they suspect your return might have been submitted by someone else.
See our Held or Stopped Refund page or our video for more information. If the IRS is reviewing your return, the review process could take anywhere from 45 to 180 days, depending on the number and types of issues the IRS is reviewing. Follow these steps if you know you made a mistake, before the IRS contacts you.
6 years - If you don't report income that you should have reported, and it's more than 25% of the gross income shown on the return, or it's attributable to foreign financial assets and is more than $5,000, the time to assess tax is 6 years from the date you filed the return.
Who Is Audited More Often? Oddly, people who make less than $25,000 have a higher audit rate. This higher rate is because many of these taxpayers claim the earned income tax credit, and the IRS conducts many audits to ensure that the credit isn't being claimed fraudulently.
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.
More In Help. The IRS proactively identifies and stops the processing of potential identity theft returns. You may receive a notice or letter asking you to verify your identity and tax return information with the IRS. This helps prevent an identity thief from getting your refund.
If you fail to respond to Form 5071C, the IRS will not be able to process your tax return. The sole purpose of the 5071C letter is to verify the identity of the taxpayer before processing the returns. Essentially, your tax refund will get delayed until you verify the identity.
You can find digital copies of most IRS notices in your online account, under the 'Notices and Letters' section.
Accessing IRS tools
Anyone with an existing ID.me account from the Child Tax Credit Update Portal, or from another government agency, can sign in with their existing credentials. To verify their identity with ID.me, taxpayers will need to: Provide a photo of a driver's license, state ID or passport.
Most IRS letters and notices are about federal tax returns or tax accounts. Each notice deals with a specific issue and includes any steps the taxpayer needs to take. A notice may reference changes to a taxpayer's account, taxes owed, a payment request or a specific issue on a tax return.