The IRS can't verify your identity due to mismatched personal details, issues with your ID documents (blurry, expired, or wrong type), technical glitches with the ID.me portal, or because your return was flagged for potential tax fraud/identity theft, requiring you to wait for a mailed code or follow specific letter instructions. Common problems involve incorrect names, addresses, SSNs, or issues with selfies/documents during the online process, but alternative verification methods (phone, in-person) exist.
The IRS asks you to verify your identity primarily to stop fraud, often because someone filed a tax return using your Social Security Number (SSN) without your permission, or due to data discrepancies, a new address, or a previous data breach involving your info. Verification ensures you are the legitimate taxpayer before they process your return, issue refunds, or grant access to your online account, protecting you from identity theft.
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.
To fix failed identity verification, ensure your details (name, DOB, address) exactly match your ID, use good lighting and no glare for photos, update your browser/app, disable VPNs/extensions, clear cache, use a different device, and check for typos or abbreviations in your entered info. If issues persist, contact the service's support or consider in-person verification if available.
An IRS audit is an examination or review of your information and accounts to ensure you're reporting things correctly, following the tax laws, and that your reported tax amount is correct. In other words, the IRS is simply double-checking your numbers to make sure you don't have any discrepancies in your return.
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.
Should your account be selected for audit, we will notify you by mail. We won't initiate an audit by telephone. Assistance is available to help you understand the letter/notice received: Understanding your IRS notice or letter.
Be ready to verify your identity when calling the IRS
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.
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.
Your refund
It may take up to 9 weeks to process your return after you verify it.
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).
The IRS $600 rule refers to a change in reporting requirements for third-party payment apps (like Venmo, PayPal) for taxable income from goods and services, where platforms must send a Form 1099-K if you receive over $600 in a year, intended to capture gig economy/side hustle income, though delays and phased implementation have adjusted the timeline, with current rules for 2024 using a higher threshold ($5,000) before fully phasing to $600 for future years, but remember all taxable income, regardless of form, must always be reported.
The IRS 7-year rule primarily applies to keeping records for claiming a deduction for bad debts or losses from worthless securities, allowing a longer period to file for a credit or refund, but it's not a universal audit limit; it's often a recommended safe buffer for general record-keeping, with the standard IRS audit period usually being 3 years, extending to 6 years for substantial income omission (over 25%) or foreign income issues, and indefinitely for fraud.
5 Steps to Avoid Trouble with the IRS:
Signs of an IRS Criminal Investigation
This could involve frozen accounts, banks refusing transactions without clear reasons, or inquiries from financial institutions about specific transactions. The IRS may issue summonses to banks to collect information about your financial activities as part of their investigation.
If you can't verify online
Call us at the phone number on your notice. The number is for identity and tax return verification only. Other tax information, such as refund status, is not available.