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Getting a letter in the mail from the IRS is enough to send a shockwave of anxiety through the minds of most taxpayers. Did I file wrong? Do I owe the IRS money? Am I getting audited? What’d I do wrong?! But not all notices mean you did something wrong or owe more money to the IRS. The 5071c letter is one example! In this article, we’re discussing what the 5071c letter is and what you should do if you receive one. Need answers fast? Use the links below to skip ahead, or read all the way through for a step by step guide to responding to your 5071c letter as well as tips on how to protect yourself from tax-related identity theft.
What is a 5071C Letter From The IRS?According to the IRS, a 5071c letter is a request to verify your identity when a federal income tax return is filed using your name and taxpayer ID. You’re probably wondering: why would the IRS be asking me if I filed a tax return for myself? The unfortunate reality is, tax-related identity theft is actually one of the most common tax scams. In fact, as of February 28, 2019, the IRS identified and confirmed 3,741 casesjust in the months preceding the April 15, 2019 filing deadline of this year. A 5071c IRS identity verification letter is simply a way for the IRS to confirm that you were actually the one that filed a tax return for yourself, not someone else. This helps them ensure that you can get your tax refund and ensure that you’re abiding by IRS filing standards. Why would someone else use my name to file a tax return?All you need to file a tax return is a name, Social Security number, and date of birth. For a criminal, this means easy access to the tax refund you’ve been waiting on all year—or worse, the ability to open new lines of credit under your name, giving them free rein to spend (at your expense). How do criminals get my tax information?Unfortunately, seasoned tax-related criminals have many strategies to gain access to taxpayer information. The IRS says online data breaches, phishing email scams, and fake IRS phone calls are just a few common schemes they use to get a hold of sensitive information. (We’ll dive into ways you can protect yourself from these sneaky criminals a little later on in this post). What do I do if I received Form 5071c from the IRS?If you’re reading this post, chances are you did, in fact, receive a 5071c letter from the IRS. And yes, Form 5071c is a legitimate IRS formthat needs to be addressed ASAP. There are three paths you can take in order to respond to your notice appropriately: respond online, by phone, or with the help of a tax professional. Let’s discuss each to help you find the method that works best for you. What you’ll need to respond to 5071cBefore you respond to your 5071c notice, you’ll need to gather the following information first:
Finally, log into your email account in case the IRS sends you any secure forms to fill out during your correspondence. Option 1: Respond online
Option 2: Respond by phone
Note: The IRS Identity Verification website and phone number can only be used to resolve tax return identity issues. Neither option will be able to provide you help with the status of your tax refund or other tax questions. Option 3: Enlist the help of a tax professionalIf this process is already enough to give you the heebie jeebies, you may want to contact a tax professional to help you respond to your 5071c letter appropriately. All you need to do is be present on a phone call or in person as you go through the verification process with them. What if I didn’t get the 5071c letter, but the IRS says my return has already been filed?If you e-file your taxes, you may see a notice online that says the IRS has rejected your tax return because someone else has already filed one under the same name. In this case, you should file an Identity Theft Affidavit(Form 14039), or contact the IRS at 1-800-908-4490. Though it’s never good news to find out your identity has been stolen, becoming aware of this as soon as you file can help you avoid more serious financial complications and take action immediately. What if I don’t respond to my 5071c notice?Whenever you receive any of the IRS notices and letters, you should take action as soon as possible. Depending on the type of notice you receive, you could increase the amount of tax dues you owe, become subject to certain collections measures, or lose out on your tax refund if you choose not to respond to the IRS. If you do not respond to a 5071c letter, the IRS saysthe consequences may include:
The IRS may not be able to apply overpayments to your estimated taxes for the following year What happens next?You’ve confirmed your identity with the IRS, now what? It depends on whether you actually filed the return in question, or if someone else filed it without your authorization. If the return was filed by you…If you did file the tax return mentioned on your 5071c notice and the IRS was able to verify your identity, your return will be processed as normal. The IRS says it takes approximately nine weeks to process your returnafter your identity has been confirmed. If you’re due a refund, the amount will either be mailed to you or transferred directly into your account, depending on what you selected when you filed. If the return was fraudulent…If you did not file the tax return in question, the IRS says you should take the following stepsafter responding to Form 5071c:
Even if someone else filed a fraudulent tax return under your name, it’s still important to file your taxesif you haven’t already. This process may delay when you get your refund, but following these steps will help you protect your personal information in the future. Protecting yourself from tax-related identity theftNow that you know what tax-related identity theft is, and what to do if you become a victim, let’s discuss some preventative measuresyou can take to reduce the risk of becoming a victim of financial fraud in the future.
TakeawaysReceiving a notice from the IRS can be intimidating at first, but by following these steps you can resolve your issue, prevent any further threats, and take additional measures to protect your financial and personal information. Need help addressing an issue with the IRS? Community Tax is here to help! Our team of CPAs, Enrolled Agents, and Tax Practitioners have decades of collective experience working with customers to get higher tax savings, resolve tax issues, and provide tax monitoring and ID protectionyear-round. Click hereto start your free tax consultation today. Can I verify my identity for IRS over the phone?To verify your identity and tax return information, please call the phone number on the IRS letter that you received.
What is this phone number 1800 830 5084?If you are a victim of this scam, you should receive a 5071C letter from the IRS with instructions for providing information via the IRS identity theft website. You also can call the IRS at (800) 830-5084 to let agency officials know that you did not file the return referred to in the IRS letter.
How do I verify a 5071C?The IRS offers only two ways to verify your identity: Online at the IRS Identity Verification Service website. By phone at the toll-free number listed on your 5071C Letter.
How long does it take to get refund after I verified my identity 5071C 2022?What happens after I successfully verify? If we successfully verify your identity, we'll process your tax return. It will take up to 9 weeks to receive your refund or credit any overpayment to your account.
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