We have had many clients contact us regarding letters from the IRS requesting “identity verification.” Scammers often use stolen Social Security numbers to file fraudulent tax returns and collect refunds. To prevent this, the IRS scans every tax return for signs of fraud. If a suspicious tax return is found, the IRS reviews the return and then sends a letter to the taxpayer informing them about potential ID theft, and asking for identity verification.
The IRS may send any one of these identify fraud letters to taxpayers, for example:
Letter 5071C, Potential Identity Theft with Online Option: Tells the taxpayer to use the online tool to verify their identity and tax return information. If the taxpayer didn’t file, they can let the IRS know using the online tool.
Letter 4883C, Potential Identity Theft: Tells the taxpayer to call the IRS to verify their identity and tax return information. If the taxpayer didn’t file, they can call the Taxpayer Protection Program hotline number on the letter.
Letter 5747C, Potential Identity Theft In Person Appointment: This tells the taxpayer to verify their identity and tax return information in person at a local Taxpayer Assistance Center. If the taxpayer didn’t file, they can call the Taxpayer Protection Program hotline number on the letter.
Letter 5447C, Potential Identity Theft Outside the U.S.: This tells the taxpayer to use the online tool or to call the IRS to verify their identity and tax return information. If the taxpayer didn’t file, they can let the IRS know using the online tool.
If taxpayers received one of the letters above and do not verify their identity, their tax return is held in “quarantine,” and any payments made will not be posted to their account. Nor will they receive a refund if one is due to them.
Notices have been sent for tax years 2020, 2021, and 2022. The tax return is held in a protected identity verification folder by the IRS and we, the CPAs, do not have access. We cannot complete this process for you either, you must complete it yourself. Please contact us if you have noticed a delay in the processing of any prior year tax returns, your TFG Accounting and Tax professional can assist. Email cpa@fuoco.com or call us toll free at 855-542-7537.
