Why you received IRS Letter 5071C. The IRS fraud detection system flagged your tax return as a potential identity theft case. The IRS sends this notice to request that you provide documentation to prove your identity.
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 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.
When a thief steals someone's Social Security number, they can use it to file a fraudulent tax return. This is tax-related identity theft. The IRS scans tax returns for possible fraud. If a tax return is flagged as suspicious, the agency will pull it for more review.
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.
What happens after I successfully verify? We'll process your tax return. It may take up to 9 weeks to receive your refund or credit any overpayment to your account.
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.
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.
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.
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.
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.
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.
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.
The IRS will issue these balance due notices and letters in gradual stages in 2024 to ensure taxpayers who have questions or need help are able to reach an IRS assistor. This will also provide additional time for tax professionals assisting taxpayers.
Then, the taxpayer should call the IRS using the toll-free Identity Verification telephone number: (800) 830-5084. If the taxpayer did not file the return in question, they should still call the toll-free number to inform the IRS.
You can find digital copies of most IRS notices in your online account, under the 'Notices and Letters' section.
You may not be able to use online verification for the following reasons: You did not enter a SSN on your form. You have a limited credit history. You are the victim of identity theft.
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.
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.
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.
The IRS may pursue criminal charges if they suspect fraudulent returns. Criminal conduct refers to any act that violates tax laws and regulations. If the IRS determines that there is enough evidence to warrant criminal action, they will refer the case to the Department of Justice for prosecution.
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.