Our sources at the IRS sent us some important information we would like to share with you, our professional tax software friends. There are 3 identity theft letters that you need to know about.
It seems that the Identity Theft Filters at the IRS are working hard on issuing Letter 5071C ID Theft Letter – SSN is masked. This is to notify the taxpayer that it is possible they have been a victim of Identity Theft. If your client has not yet filed, the IRS should be contacted and made aware of this. If your client has filed, they can use the secure Idverify website (will provide link) and answer the questions to confirm their identity.
Letter 5071C ID Theft Letter reads:
We received your federal income tax return; however, in order to process it, we need more information to verify your identity. The letter you received provides two options for responding. Both options enable you to verify your identity with us so we can continue processing your tax return.
What is involved in this process?
We will continue processing your tax return once we verify your identity. Follow the identity verification described under “What should you do?” below to provide us with the necessary information.
What should you do?
- Use our secure Identity Verification Service website idverify.irs.gov. It’s quick and secure. To complete the entries, you will need to have a copy of your prior year tax return and your most recently filed tax return.
- If you cannot use the Idverify website, you can call us using the toll-free Identity Verification telephone number provided in your letter. Again, you will need to have a copy of your prior year tax return and your most recently filed tax return
- If you did not file the return in question, you can use either option to notify us. The IRS is also issuing Letter CP 12C ID Theft which is an identity theft letter as well. This is similar to the letter above and should be treated the same.
Lastly, the IRS has been comparing addresses on W-2’s and 1040’s to addresses on returns. When these do not match up Change of Address Letters CP 148A or CP 148B are sent out for address verification. You client will only need to take action if there is an issue, otherwise no response is needed.
Nice catch IRS! We are happy to hear that the IRS has this program in place and it is intercepting. For some this could be a huge annoyance, but it will save so many from becoming victims of theft.