Receiving a letter from the IRS can be stressful, especially if it’s a 5071C letter. Naturally, you might wonder, “Does 5071C mean I’m being audited?” The short answer is no—a 5071C letter is not an audit notice. Instead, it’s a request from the IRS to verify your identity. Here’s what you need to know about this letter and how to respond.
What Is a 5071C Letter?
The IRS issues a 5071C letter when they suspect potential identity theft involving your tax return. This letter is a precautionary step to confirm that you, and not someone impersonating you, filed the return in question. It’s important to note that this letter does not indicate any wrongdoing on your part or that an audit is being conducted.
Why Did I Receive a 5071C Letter?
There are several reasons why the IRS might send you a 5071C letter:
- The return shows unusual activity compared to previous years.
- Duplicate returns were filed using your Social Security number.
- There are discrepancies in personal information, such as mismatched names or addresses.
The IRS takes identity theft seriously, so the letter is a safeguard to protect your personal and financial information.
How to Respond to a 5071C Letter
If you receive a 5071C letter, follow these steps promptly:
- Go to the IRS Identity Verification Service: Visit https://www.idverify.irs.gov. This is the fastest way to verify your identity online.
- Call the number listed in the letter: If you’re unable to complete the online verification, contact the IRS using the phone number provided.
- Prepare necessary documents: Have your 5071C letter, your previous year’s tax return, and other identification documents ready when verifying your identity.
What Happens After Verification?
Once you verify your identity, the IRS will continue processing your return. This step helps ensure that any potential refund is sent to the rightful taxpayer. If additional issues arise, the IRS will notify you.
What 5071C Does Not Mean
It’s crucial to understand that a 5071C letter does not mean you’re being audited. An audit involves a detailed review of your tax return and financial records, which is unrelated to identity verification.
Final Thoughts
Receiving a 5071C letter might feel alarming, but it’s simply a precautionary measure to protect your tax information. Respond promptly to avoid delays in processing your return. If you’re unsure how to proceed or have questions about your tax situation, consult a tax professional for guidance.
