The IRS asks you to verify your tax return primarily to prevent identity theft and fraud, ensuring that you—not a scammer—filed the return and are entitled to the refund. Common reasons include suspicious activity, data discrepancies, moving, or random selection. You will likely receive a notice (e.g., CP5071C, 4883C) to confirm your identity.
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.
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.
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 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.
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).
If the IRS decides that your return merits a second glance, you'll be issued a CP05 Notice 1 . This notice lets you know that your return is being reviewed to verify any or all of the following: Your income. Your tax withholding.
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.
Request an expedited refund by calling the IRS at 800-829-1040 (TTY/TDD 800-829-4059). Request a manual refund expedited to you.
The IRS issues refunds only on business days. However, some banks may post deposits on Saturdays if funds are received late on a Friday.
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.
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.
First things first, an IRS Letter 5071C is not an audit. Whew, you can take a deep breath! At this point, the IRS is not auditing your tax return. In fact, they have not even begun to review it yet!
The IRS has no maximum time limit when it comes to processing tax refunds, but after 45 days, it is required to pay interest on your refund. In most cases, you can expect the IRS to issue your tax refund within 21 days of filing your tax return.
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.
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.
The IRS is considering changing an amount on your tax return, due to an examination after it processed your tax return. This is called an audit. If it audits your return, the IRS will notify you by mail, and the notice will tell you if the audit will be handled by mail or in person.
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.
The IRS sends out letters 5071C or 4883C that require taxpayers to verify identity before the IRS will continue processing a tax return. The letter details the process that the IRS requires to validate their identities. See Understanding Your 5071C Letter and Understanding Your 4883C Letter for more information.