IRS return verification (often via Letters 5071C or 5747C) is primarily triggered by suspected identity theft or fraud when a tax return shows inconsistent data, such as a new address, drastically different income/refund amounts, or when a return is filed using your SSN before you file. These checks aim to protect taxpayers from fraudulent refund claims.
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.
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.
Common IRS audit triggers
Your refund
It may take up to 9 weeks to process your return after you verify it.
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 IRS does sometimes send letters requesting identity verification. If your return triggered certain fraud filters, they might pause processing until they confirm you are the actual, real person who filed. This doesn't mean you did anything wrong. In fact, it's a protective measure.
Many people mistakenly assume that if their tax return is selected for ID verification, it means that there was something wrong with their tax return. The truth is that the IRS select returns at random for ID verification.
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).
We could take up to 60 days to complete this review. Please don't contact us prior to 60 days from the date of this notice since we won't be able to provide you any additional information. You can check your refund status at www.irs.gov/refunds or the IRS2Go mobile app for smart phones.
The Taxpayer Protection Program will identify a suspicious tax return filed with your name and SSN and will send you a letter to let you know. The letter will ask you to verify your identity and tax return information.
Taxpayers whose tax returns have been flagged for possible IDT should receive one of the following letters: Letter 5071C, Potential Identity Theft during Original Processing with Online Option – Provides online and phone options and is issued most widely.
Be ready to verify your identity when calling the IRS
What happens during an audit? Internal audit conducts assurance audits through a five-phase process which includes selection, planning, conducting fieldwork, reporting results, and following up on corrective action plans.
An IRS notice may alert you to a mistake on your tax return or that it's being audited. You can verify the information that was processed by the IRS by viewing a transcript of the return to compare it to the return you may have signed or approved. You can access your tax records through your account.
Remember, you will be contacted initially by mail. The IRS will provide all contact information and instructions in the letter you receive. If we conduct your audit by mail, our letter will request additional information about certain items shown on the tax return such as income, expenses, and itemized deductions.
If the deductions, losses, or credits on your return are disproportionately large compared with your income, the IRS may want to take a second look at your return. Taking a big loss from the sale of rental property or other investments can also spike the IRS's curiosity.
Here's a list of seven symptoms that call for attention.
You generally shouldn't worry if your refund is "still being processed," as it means the IRS is working on it, but it might take longer than the typical 21 days due to common issues like errors, incomplete information, or claiming credits like the EITC/ACTC. Worry only becomes necessary if you receive an IRS letter requesting more information or if the "Where's My Refund?" tool shows a specific problem like fraud, but typically, it just means a longer wait, not no refund at all.
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.