According to a report by the Treasury Inspector General for Tax Administration, the IRS flagged approximately 2.4 million returns for potential identity theft out of nearly 145 million returns received during the 2025 filing season. While receiving an IRS identity verification notice can be alarming, it does not necessarily mean your return is fraudulent or that you are being audited.
In this blog, I will explain what to expect and the next steps you should take if your tax return is flagged for potential identity theft.
What Is IRS Identity Verification and Why Does the IRS Use It?
To help combat tax-related identity theft, the IRS has implemented procedures to identify potentially fraudulent tax returns. Identity verification is one part of that process.
The IRS identity verification process is similar to the multi-factor authentication (MFA) tools many people use every day. For example, when you log in to your bank account online, you’re often required to enter your login credentials and then verify your identity using a one-time code. The IRS verification process serves a similar purpose, confirming that a tax return was filed by the legitimate taxpayer and not by someone attempting to use stolen personal information. The primary difference is the methods the IRS uses to verify identity.
If you receive a notice from the IRS regarding potential identity theft, there is no need to panic. While no one enjoys receiving a letter from the IRS, these notices are becoming more common. Receiving one does not mean you have done anything wrong or that your return is under audit. It simply means the IRS has flagged your return for potential identity theft and wants to confirm that you filed the return before processing it.
If you know or suspect that your identity has been stolen, you can notify the IRS by filing Form 14039, Identity Theft Affidavit.
How the IRS Notifies Taxpayers for Potential Identity Theft
In cases of suspected identity theft, the IRS generally notifies taxpayers by mail. If you receive a phone call, text message or email asking you to verify your identity for a tax return, it is likely a scam designed to obtain your personal information.
Below are four common letters the IRS sends when additional identity verification is required. You may also visit the IRS website here for more information about these notices and the verification process.
Letter 5071C: Potential Identity Theft with Online Verification
This letter instructs taxpayers to use the IRS’s online identity verification tool to confirm their identity and tax return information. You may also visit here to go to the IRS website and use the online verification tool, which is only available to taxpayers who received Letter 5071C or Letter 5447C.
Letter 4883C: Potential Identity Theft
This letter informs taxpayers that they must call the IRS to verify their identity and certain information from their tax return.
Letter 5747C: Potential Identity Theft Requiring an In-Person Appointment
This letter instructs taxpayers to call the IRS and schedule an in-person appointment at a local Taxpayer Assistance Center to verify their identity and tax return information. Although this process can be time-consuming, it is a standard IRS procedure for certain cases.
Letter 5447C: Potential Identity Theft for Taxpayers Outside the United States
This letter is issued to taxpayers living outside the United States. It instructs them to either use the online verification tool or contact the IRS by phone to verify their identity and tax return information.
Why a Taxpayer Might Receive One of These Letters and What You’ll Need to Verify Your Identity
If you receive one of these letters, you may be wondering what caused the notice. While the IRS keeps the details of its selection process confidential, several common situations may trigger additional verification:
- Suspicious return activity.
- An unusually large refund claim.
- Recent changes to your address or banking information.
- First-time filing patterns.
- IRS anti-fraud filters detect characteristics commonly associated with fraudulent returns.
- Concerns related to data breaches or the potential misuse of personal information.
The letter you receive will outline the information needed to complete the verification process. Commonly requested information includes:
- Information from your prior-year tax return.
- Information from the current tax return that was filed.
- Your Social Security number.
- Your filing status.
- Your refund amount, if applicable.
- Additional supporting documentation, if needed.
What to Expect After You Verify Your Identity
Once you have completed the identity verification process, the next step is simply waiting for the IRS to continue processing your return.
After the IRS confirms your identity and validates your return, it can resume normal processing procedures. However, if you are expecting a refund, it is important to understand that the verification process may delay its issuance by several weeks.
While these delays can be frustrating, especially when the return was legitimate from the start, the verification process exists to protect taxpayers from identity theft and help safeguard sensitive personal information.
Final Thoughts
Receiving an IRS identity verification notice can be unsettling, but in most cases, it is simply a precautionary step designed to protect taxpayers and prevent fraudulent tax filings. Understanding why these notices are issued, how the verification process works and what information you may need can help reduce stress and keep the process moving smoothly.
If you receive an identity verification notice and aren’t sure what to do next, the tax professionals at Weinstein Spira are here to help. Contact our team here. We look forward to assisting you!
