In response to the increasing tax-related identity theft problem, the Internal Revenue Service (IRS) is monitoring tax returns for signs of fraudulent activity. The most frequent scam is when thieves use a person’s name and Social Security number to file a fraudulent return and steal a tax refund. When the IRS suspects a return is fraudulent, the agency will request identity verification from the person whose name and address is listed on the return. Here's how to handle these requests.
TABLE OF CONTENTS
If the IRS suspects that a tax return with your name on it is potentially the result of identity theft, the agency will send you a special letter, called a 5071C Letter. This letter is to notify you that the agency received a tax return with your name and Social Security number that it believes may not be yours. The letter asks you to take specific steps to verify your identity and confirm whether or not the return is actually yours.
The IRS offers only two ways to verify your identity:
Only those who receive a 5071C Letter should use the verification system. The letters are sent to you via U.S. mail. They are never emailed, and the IRS does not initiate verification requests by phone.
The IRS prefers that taxpayers use the online system; because phone callers may experience delays due to the high volume of calls the IRS receives. The phone number on your letter can be used only for verification purposes, not for any other tax issues.
The ID Verify website or phone system asks questions that only you can answer correctly. What you will need:
If the verification proves you are the person named on the return and that you personally filed the return, the return will be processed. After successful verification, it takes about 6 weeks to complete processing.
The return will be rejected and investigated as identity theft/tax fraud if:
Respond to all requests from the IRS to validate your identity in order to avoid automatic rejection of what could be a valid tax return.
With TurboTax Live Full Service, a local expert matched to your unique situation will do your taxes for you start to finish. Or, get unlimited help and advice from tax experts while you do your taxes with TurboTax Live Assisted.
And if you want to file your own taxes, you can still feel confident you'll do them right with TurboTax as we guide you step by step. No matter which way you file, we guarantee 100% accuracy and your maximum refund.
Use your Intuit Account to sign in to TurboTax . By selecting Sign in, you agree to our Terms and acknowledge our Privacy Statement . New to Intuit? Create an accountTaxes done right,
with experts by your side
Get unlimited advice, an expert final review and your maximum refund, guaranteed.
Start for free100% free filing.
Max refund guarantee. $0
The above article is intended to provide generalized financial information designed to educate a broad segment of the public; it does not give personalized tax, investment, legal, or other business and professional advice. Before taking any action, you should always seek the assistance of a professional who knows your particular situation for advice on taxes, your investments, the law, or any other business and professional matters that affect you and/or your business.
Estimate your tax refund and where you stand
I’m a TurboTax customer
Easily calculate your tax rate to make smart financial decisions
Know how much to withhold from your paycheck to get a bigger refund
Estimate your self-employment tax and eliminate any surprises
Estimate capital gains, losses, and taxes for cryptocurrency sales
Find deductions as a 1099 contractor, freelancer, creator, or if you have a side gig
See how much your charitable donations are worth
A Form 1040 return with limited credits is one that's filed using IRS Form 1040 only (with the exception of the specific covered situations described below). Roughly 37% of taxpayers are eligible.
If you have a Form 1040 return and are claiming limited credits only, you can file for free yourself with TurboTax Free Edition, or you can file with TurboTax Live Assisted Basic or TurboTax Full Service at the listed price.
Situations not covered:
TurboTax Individual Returns:
TurboTax Business Returns:
