Each year, the IRS processes hundreds of millions of tax returns, but not all of them are from legitimate taxpayers. With identity theft and fraudulent refund claims on the rise, the IRS has taken additional steps to protect taxpayers and ensure tax refunds are not issued to criminals. One of these measures is the issuance of a 5071C letter, which prompts the recipient to verify their identity before a refund can be processed. In this comprehensive guide, we explain what the 5071C letter means, why you may receive one, and how to respond correctly.
What Is an IRS 5071C Letter?
The 5071C letter is an official IRS communication sent to taxpayers when the agency suspects identity theft or potential fraud related to a filed tax return. It does not necessarily mean fraud has occurred, but rather that the IRS needs to confirm that the return was actually filed by you, the legitimate taxpayer.
This letter is part of the IRS’s identity verification process and is typically triggered when unusual or suspicious patterns are detected, such as a return filed from a new address, a new bank account listed for direct deposit, or a return that doesn’t match historical patterns.
Why Did You Receive a 5071C Letter?
The IRS may send you a 5071C letter for several reasons:
- The return was filed from an unfamiliar IP address or geographic region.
- The Social Security Number (SSN) used on the return does not match the IRS’s existing records.
- There are inconsistencies in income or withholding details.
- A previous identity theft flag is associated with your SSN.
- Direct deposit was requested to a new or suspicious bank account.
It’s important to understand that receiving this letter doesn’t automatically mean your identity has been stolen, but it does warrant caution and immediate action.
What the 5071C Letter Looks Like
The 5071C letter will include:
- Your name and address
- A 6-digit reference number
- Instructions to verify your identity online or by phone
- A warning to act within 30 days to avoid return delays
The letter will never request sensitive information such as full credit card numbers, passwords, or bank login credentials. Always check the authenticity of the correspondence by cross-referencing it with official IRS instructions.
How to Verify Your Identity
Upon receiving a 5071C letter, you should act promptly. The IRS provides two ways to complete identity verification:
Option 1: Online Verification via IRS Identity Verification Service
- Go to the official IRS website: www.irs.gov/verify.
- Enter the 6-digit reference number from your letter.
- Provide information from your current and prior tax returns to confirm your identity (such as your AGI and filing status).
- You may also be required to answer security questions and verify mobile phone ownership.
This is the fastest and most secure way to resolve your verification.
Option 2: Phone Verification
If you cannot verify your identity online, you may call the IRS at the toll-free number provided in your 5071C letter. Have the following ready:
- The 5071C letter itself
- A copy of your current and prior year tax returns
- Any supporting documents (W-2s, 1099s, etc.)
- Valid government-issued photo ID (if requested)
What Happens After Verification?
Once your identity is verified and the IRS confirms that you are the legitimate filer of the tax return in question:
- Your return will be processed normally.
- Your refund, if due, will be issued within approximately 3–6 weeks.
- If identity theft is confirmed, the IRS may require additional steps, such as submitting Form 14039 (Identity Theft Affidavit).
If you do not respond to the 5071C letter within the required time frame (usually 30 days), your return will not be processed, and no refund will be issued.
Red Flags and Warning Signs of Identity Theft
If you receive a 5071C letter, be alert for other signs of identity theft, including:
- You receive IRS notices about a return you did not file.
- You are unable to e-file your return because a return has already been filed under your SSN.
- You receive tax transcripts or records that you did not request.
How to Protect Yourself from Tax Identity Theft
Even if your identity hasn’t been stolen, taking the following precautions can help prevent future issues:
- File your tax return early each year.
- Use secure internet connections when accessing sensitive financial sites.
- Monitor your credit reports and IRS account regularly.
- Enroll in the IRS IP PIN program for added security on future returns.
- Never respond to unsolicited calls, emails, or texts claiming to be from the IRS.
What If You’re Still Unsure?
If you’re uncertain whether the 5071C letter you received is legitimate, contact the IRS directly using the official phone numbers found on IRS.gov. Do not rely on contact information listed in emails or suspicious websites.
Conclusion
The 5071C letter is not something to ignore. While it doesn’t always mean your identity was stolen, it’s a sign that your return has triggered security protocols. Verifying your identity promptly will allow the IRS to process your return and issue any refund you’re owed. Taking proactive steps can also protect your identity going forward and ensure your interactions with the IRS remain smooth and secure.
Always work with a trusted tax professional if you are unsure how to proceed, especially if identity theft is suspected or confirmed.
