The “Dos and Don’ts” of IRS Identity Verification

For taxpayers, receiving an Internal Revenue Service identity verification letter can be startling and stressful, but these types of letters are routine steps by the IRS to prevent fraud. It simply means the IRS has flagged a return filed in your name as suspicious. For your own protection, the IRS needs you to confirm your identify before processing and releasing a refund claimed on that return.

When receiving one of these letters, there are certain things to do, and not do, to successfully have the IRS process your tax return.

Do: Act Quickly

When receiving one of these letters, you want to respond quickly. You should respond within 30 days of the date on the letter. Ignoring the letter or not responding timely will only delay the processing of your tax return and refund, or stop your return and refund from being processed at all.

Do: Respond Correctly

You want to be sure you are responding correctly to any letters you receive. The first step is to use an official IRS channel to verify your identity.

There are two ways you can verify your identity:

• Online: Use the IRS Identity Verification Service, usually through ID.me, for the fastest processing.
• Phone: Call the specific toll-free number printed in your letter.

Do: Be Prepared

Once you’ve identified your preferred channel, you want to be prepared before initiating a call or going online. Generally, the IRS will ask specific questions to verify your identity, which can come from the tax documents you filed.

You should gather your documents before starting the identity verification process. Specifically, you should have the following documents available:

• The original IRS verification letter, such as a 5071C, 4883C, or 5447C;
• A copy of the tax return mentioned in the letter; and
• A copy of your prior year's tax return, with all supporting documents, such as W-2s or 1099s.

If you are not prepared and/or do not answer the IRS identity verification questions correctly, the IRS could request you to verify your identity in person at a local Taxpayer Assistance Center.

Don't: Respond to the Letter by Mail

Even though you received a physical letter, do not mail back personal information unless the letter specifically instructs you to. Always follow the instructions on the letter you received to correctly verify your identity.

Don't: Fall for Phone or Email Scams

The IRS will never initiate identity verification through an unsolicited phone call, text, or email. The IRS will only issue a letter via U.S. mail that directs you to go online, call a toll-free number, or visit the IRS in person to verify your identity.

Don't: Just Pay a Balance Due

There are scams that send fake identity verification letters that demand immediate payment. A real verification letter is sent to confirm identity, not to collect money. Never just pay a balance due without confirming with the IRS first by going online or calling their toll-free number to get your account information.

Don't: Scan Unverified QR Codes

While some genuine IRS letters now include QR codes, scammers also use them to lead you to phishing sites. Always verify the letter's legitimacy on IRS.gov before scanning QR codes.

What if I Didn’t File a Return?

If you did not file a return for the tax year mentioned in the letter, you should immediately report to the IRS that you did not file. In this case, you may be a victim of identity theft. You should use the IRS Identity Verification Service online tool or phone number in the letter to notify the IRS.

How Can I Prevent Future Identity Verification?

After verifying your identity, consider requesting an IRS Identity Protection PIN (IP PIN) to prevent future requests for identity verification, as well as the possibility of preventing future fraudulent filings in your name. Your IP PIN will be required to electronically or paper file your tax returns in the future.

How Long Will It Take to Get My Refund?

After you verify your identity, don’t expect the IRS to immediately process your tax return or issue an immediate refund. Even after successful verification, it takes a minimum of nine weeks for the IRS to finish processing your return and issue your refund.

What if I Can’t Verify My Identity, or My Return Still Isn’t Processed?

If your return still isn’t being processed despite verifying your identify, you may need to consult with a professional. EisnerAmper’s Tax Controversy & Dispute Resolution practice has experienced professionals who can assist taxpayers to navigate identity verification, tax return processing, and requests for refunds. Contact us below to see how we can assist.