What Is a 5071C Letter?: A 5071C letter is how the IRS attempts to verify your identity after their fraud detection system noticed something suspicious about your tax return. While it doesn’t mean that your identity has been stolen, it does mean there's something unusual about your tax return and further action must be taken.
Why Did You Receive One?: Receiving a 5071C letter doesn't automatically mean you've done something wrong (or that something definitely stole your identity); it could simply be due to a simple error, a new address, or unusual tax activity, anything that deviates from the norm.
Responding to a 5071C Letter: The 5071C letter itself will provide instructions on how to verify your identity. These instructions will most likely direct you to the IRS Identity Verification Service website or ask you to call them through a toll-free number. Respond promptly will help you avoid delays in processing your refund.
What Happens If You Ignore It?: First of all, don’t. It's crucial to take the letter seriously and act quickly to resolve the issue, because ignoring a 5071C letter can lead to significant delays in your tax return processing, and your refund could be frozen until your identity is verified.
Is the 5071C Letter a Scam?: Scammers just love impersonating the IRS, don’t they? Regardless, the 5071C letter is a legitimate IRS correspondence. To verify its authenticity, check for the official IRS logo, your correct name and tax year details, and instructions directing you to the IRS website (www.irs.gov/verifyidentity). The IRS will never ask for sensitive information via email or text, so avoid responding to such messages claiming to be related to a 5071C letter.
When the IRS sends you a 5071C letter, that’s a request for you to verify your identity. You’re probably getting one because their fraud detection system flagged your return as a potential case of identity theft. So, what do you have to do now?
What’s the Purpose of the 5071C Letter?
IRS Letter 5071C serves a crucial purpose in protecting taxpayers from potential tax fraud. In short, the IRS received a tax return with your name and tax identification number, but they believe the return may be fraudulent. The 5071C letter is their notice to you. This letter is a warning sign and shouldn’t be taken lightly.
The purpose of this letter is to notify the recipient that the IRS is concerned about potential tax fraud and to eliminate any further fraudulent tax returns. To do this, the letter will ask the recipient to complete an online identity verification process at www.irs.gov to confirm their identity. The verification process is relatively simple and can be completed online. Nonetheless, it is crucial you take adequate precautions to verify your identity to help protect against fraud.
As a recipient of IRS Letter 5071C, it is crucial to take the necessary steps to verify your identity and confirm whether or not you may be a victim of identity theft. If you are a victim of identity theft, it’s crucial you take quick action to prevent any further harm. Therefore, never ignore this notification, as it is the first step in stopping potential tax fraud.
Who Receives this Letter?
The IRS Letter 5071C is typically sent to taxpayers whose tax returns have raised suspicions of identity theft. The Internal Revenue Service has systems in place to detect potentially fraudulent activities on returns that have already been submitted.
If any such activity is detected, the IRS sends out Letter 5071C to request identity verification. This is done to make sure that the return filed belongs to the correct person and to avoid any potential tax fraud.
It is important to note that anyone who files their income tax return, regardless of whether it is done electronically or by mail, could potentially receive this letter. The purpose of the letter is to verify the taxpayer identification and ensure that there is no potential identity theft or fraudulent activity.
If your return is found to be in question, you may receive an IRS identity verification letter requesting further information to validate your identity.
Receiving a 5071C Letter
If you have received an IRS Letter 5071C, you may be wondering what you need to do about it. It is important to follow these steps accurately and promptly to avoid any further complications.
If you fail to respond to the IRS 5071C letter, the consequences can be severe. The IRS may place a freeze on your account or withhold any tax refunds owed until your identity can be confirmed. In extreme cases, you may also be subject to investigations and potential legal proceedings.
Therefore, it is imperative to respond to the letter and cooperate with the IRS during the verification process truthfully. Remember, honesty and transparency are crucial throughout the verification process.
How to Respond to the IRS 5071C Letter in 2024
The process of responding to an IRS 5071C letter can be overwhelming, but understanding the steps involved can help ease any anxiety. Luckily, the IRS has made it easy to complete the process online. Here are the three steps you should take upon receiving an IRS 5071c letter:
Review the letter carefully: Read through the letter thoroughly and ensure that the tax return in question is indeed yours. If you did not file a return or suspect identity theft, you should contact the IRS immediately using the toll-free number provided in the letter. Specifically, you will need the 14 digit control number on the letter.
Locate the tax return(s) in question. You will need the following three pieces of information regarding the tax return::
Adjusted Gross Income
Total Refund Amount
Your Elected Refund Payment Method (Direct Deposit, Check or Prepaid Card)
Visit IRS.Gov’s Identity and Tax Return Verification Service, find and select the Verify your identity and tax return button. You will be prompted to enter the above information in order to complete your verification.
WATCH: IRS Two Step Identity Verification Process
In summary, receiving an IRS 5071C letter is an indication that the IRS suspects identity theft in relation to your tax return. Responding promptly and following the steps outlined in the letter is critical.
Failing to respond and cooperate with the IRS can have severe consequences. Adhering to these basic steps can help expedite the verification process and reduce any potential complications.
What should I do immediately after receiving a 5071C letter? As soon as you receive the letter, carefully read the instructions provided. Visit the IRS Identity Verification Service website mentioned in the letter or call the designated toll-free number. Have your previous year’s tax return, current tax return, and any supporting documents ready to verify your identity.
What documents do I need to verify my identity? You’ll typically need a copy of the tax return in question, your previous year’s tax return, and personal identification such as a driver’s license, passport, or Social Security card. The letter will specify exactly what documents are required.
How long does the verification process take? After you verify your identity, it usually takes around 9 weeks for the IRS to process your tax return and issue any refund. However, processing times may vary depending on the IRS workload and any additional issues that might arise.
Can I ignore the 5071C letter if I think it’s a mistake? No, you should never ignore a 5071C letter, even if you believe it’s a mistake. Failing to respond can result in delays, or your tax return being rejected. It’s better to verify your identity promptly to avoid complications with your refund.
Is it safe to provide personal information to the IRS? Yes, as long as you’re using the official IRS Identity Verification Service website or calling the IRS directly using the number provided in the letter. Never provide personal information via email, text, or phone calls that you didn’t initiate, as these could be scams.
What if I suspect the 5071C letter is a scam? If you suspect the letter might be a scam, visit the official IRS website to find verification resources or call the IRS directly using a number from the IRS website (not the one in the letter) to confirm its legitimacy. Always be cautious of unsolicited requests for personal information, especially those that come via email or phone.
Sarah E. Deierlein Nieschalk, EA, is an experienced tax professional with over a decade of expertise representing taxpayers before the IRS. As an Enrolled Agent and Assistant Vice President of Servicing at Community Tax, LLC, Sarah specializes in resolving complex federal and state tax collection issues, including high-dollar individual liabilities, employment tax challenges, and corporate audits. Since becoming an Enrolled Agent in 2012, she has resolved over 5,000 cases, saving millions for clients while protecting countless businesses. Outside of work, Sarah enjoys painting, staying active, and raising her family of rescued dogs while contributing to nonprofit causes through storytelling events.
