You Received a 5071C Letter. Now What?

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:

1. 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.
2. 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)
3. 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.

Read more: Where to find Adjusted Gross Income on Tax Return

Sources

“IRS TWO STEP IDENTITY VERIFICATION PROCESS 2023” by Simplistic Motivation

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