Understanding the IRS 5071C Notice: Verifying Your Identity and Tax Return

Receiving a letter from the Internal Revenue Service (IRS) can be unsettling, especially if it pertains to verifying your identity and tax return. The IRS proactively monitors and identifies potential identity theft returns to prevent fraudulent activities. If you receive a 5071C notice, it’s crucial to understand its purpose and take prompt action to protect your personal and financial information.

What is a 5071C Notice?

A 5071C notice is an official communication from the IRS requesting you to verify your identity and tax return information. The IRS sends this notice to individuals whose tax returns have been flagged for potential identity theft or discrepancies. The notice aims to prevent identity thieves from fraudulently claiming tax refunds or accessing sensitive personal data.

Why Did I Receive a 5071C Notice?

The IRS may issue a 5071C notice for various reasons, including:

• Potential Identity Theft: The IRS has detected suspicious activity or inconsistencies in your tax return that suggest identity theft.
• Discrepancies in Tax Return: There may be discrepancies between the information on your tax return and the records the IRS has on file.
• Fraudulent Tax Return: The IRS suspects that a fraudulent tax return has been filed using your Social Security number or Individual Taxpayer Identification Number (ITIN).

What to Do When You Receive a 5071C Notice

Upon receiving a 5071C notice, it’s essential to take immediate action to verify your identity and tax return information. The notice will provide instructions on how to proceed, typically through the IRS Identity and Tax Return Verification Service.

Identity and Tax Return Verification Service

The IRS Identity and Tax Return Verification Service is an online platform where you can securely verify your identity and tax return information. To use this service, you will need:

• The 5071C notice you received.
• A copy of the tax return for the year specified in the notice.
• A valid photo identification.

Steps to Verify Your Identity and Tax Return

1. Create an Account: If you don’t already have an IRS online account, you will need to create one.
2. Sign In: Use your IRS online account to sign in to the Identity and Tax Return Verification Service.
3. Answer Questions: The service will ask you a series of questions about your tax return. Answer them accurately and completely.
4. Submit: Once you have answered all the questions, submit your information.

If You Didn’t File a Tax Return

If you received a 5071C notice but did not file a tax return, it’s crucial to indicate this on the Identity and Tax Return Verification Service. By doing so, you are alerting the IRS that you may be a victim of identity theft.

Other Ways to Verify Your Identity

If you cannot verify your identity online, you can call the Taxpayer Protection Program hotline listed on the 5071C notice. You will need to provide the following information:

• The 5071C notice.
• The tax return for the year specified in the notice.
• A prior year tax return, if available.
• Supporting documents for each tax return filed (e.g., W-2s, 1099s).

Consequences of Not Verifying Your Identity

If you fail to verify your identity and tax return information, the IRS may delay processing your tax return, issuing refunds, or crediting overpayments to your account. Additionally, the IRS may take further steps to protect your identity and prevent fraudulent activities.

Frequently Asked Questions

Q: What if I’m incarcerated?

A: You must coordinate with your Prison Official to verify your identity.

Q: What happens if I don’t verify immediately?

A: The IRS will not process your tax return, issue refunds, or credit overpayments until they hear from you.

Q: What happens if I can’t verify online or by phone?

A: The IRS will ask you to schedule an appointment to verify your identity in person at your local IRS office.

Q: What happens after I successfully verify?

A: The IRS will process your tax return. It may take up to 9 weeks to receive your refund or credit any overpayment to your account.

Q: What else can I do to protect my identity?

A: Refer to IRS Publication 5027, Identity Theft Information for Taxpayers, or visit Identity Theft Central. You can also get an Identity Protection PIN (IP PIN) to prevent misuse of your taxpayer identification number on fraudulent federal income tax returns.

Receiving a 5071C notice from the IRS can be concerning, but it’s essential to understand its purpose and take prompt action. By verifying your identity and tax return information, you can protect yourself from identity theft and ensure the accurate processing of your tax return. If you have any questions or concerns, don’t hesitate to contact the IRS for assistance.