Your tax return was likely flagged for identity verification by the IRS to prevent fraud, often triggered by mismatched information, a new address, or a suspected data breach. The IRS uses automated filters to detect potential identity theft, such as excessive refunds or inconsistent filing, and requires verification via a 5071C, 4883C, or 5747C letter before processing your refund.
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.
I would say it most likely has to do with what you are claiming on your return. Certain returns are flagged based on credits and such that are abused so it could be something where you are claiming a monitored credit in an amount that also gets flagged. These cases are reviewed for potential fraud or ID theft.
Once we verify your identity and confirm you submitted the tax return, we'll continue processing your return. It may take up to 9 weeks to process.
The return will be rejected and investigated as identity theft/tax fraud if: verification fails to confirm your identity or that you filed the return. if the verification process is not completed, or can't be completed.
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.
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.
If the IRS is reviewing your return, it may have questions about your wages and withholding, or credits or expenses shown on your tax return. The review process could take anywhere from 45 to 180 days, depending on the number and types of issues the IRS is reviewing.
Tax returns can be selected for review for several different reasons, and not all of them indicate a problem. In many cases, the IRS uses automated systems that flag returns with numbers that fall outside normal patterns for a given income level or filing status.
You know the IRS might be investigating you through official mail (first contact), phone calls (often with automated messages to IRS.gov), or in-person visits, but signs of a criminal probe include contact with IRS Criminal Investigation (CI) agents, subpoenas to you or your bank, questions to your accountant/bank, unusual account activity (freezing/refusing transactions), or agents suddenly going silent after an audit. Key indicators are official IRS letters, contact from CI special agents, third-party inquiries, and formal summonses for records, signaling serious scrutiny beyond a simple audit.
Your ID number will be flagged on our database to show that you have been a victim of impersonation, which alerts future credit providers to take additional care when confirming your identity.
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.
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.
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).
Your refund
It may take up to 9 weeks to process your return after you verify it.
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 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.
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.
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.
This blog addresses issues where the IRS, through its screening process, flags the tax return as potential identity theft (IDT); processing of the tax return is suspended; and a letter is sent to the filer asking them to authenticate their identity and certain tax return items before processing can resume.
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.
You know the IRS might be investigating you through official mail (first contact), phone calls (often with automated messages to IRS.gov), or in-person visits, but signs of a criminal probe include contact with IRS Criminal Investigation (CI) agents, subpoenas to you or your bank, questions to your accountant/bank, unusual account activity (freezing/refusing transactions), or agents suddenly going silent after an audit. Key indicators are official IRS letters, contact from CI special agents, third-party inquiries, and formal summonses for records, signaling serious scrutiny beyond a simple audit.