Every tax season, scammers prey on unsuspecting victims’ Social Security numbers to file fraudulent tax returns. The Internal Revenue Service (IRS) regularly scans tax returns for possible fraud, and if it comes across one that appears suspicious, it will flag the return for review. In this event, the IRS sends a letter to the taxpayer in question, notifying them of possible tax-related identity theft. The questionable return will not be processed until the taxpayer addresses the letter.

Types of Identity Fraud IRS Letters

There are three different letters the IRS mails if it suspects you may be a victim of identity theft:

• Letter 5071C – This letter asks you to use an online tool to verify your identity with the IRS and confirm you filed the return in question. Be sure to check the website and prepare all the documents needed to complete the registration, including having a copy of the 5071C or 6331C letter and a copy of the return for the tax year shown in the letter.
• Letter 4883C – This letter asks you to call the IRS to verify your identity and confirm you filed the return in question. Prior to calling the IRS, you must have all the following items available:
  • The 4883 or 6330C letter
  • Income tax return referenced in the letter (the Form 1040 series return – a Form W-2 or Form 1099 is not a tax return)
  • A prior year income tax return, other than the year in the letter, if you filed one
  • Supporting documents filed with each year’s income tax return (Form W-2 or Form 1099, Schedules C or F, etc.)

• Letter 5747C – The IRS sends this letter to advise individuals they may be a victim of a data breach. You may receive an option to verify your identity online or in person at a Taxpayer Assistance Center. Whether verifying online or in person, be sure to have a copy of the 5747C letter you received and a copy of the tax return for the tax year shown in the letter.
  • If you are required to schedule an in-person appointment, you must also bring the following documents:
    • A previous year’s income tax return, other than the year in the letter, if you filed one
    • Supporting documents filed with each year’s income tax return (Form W-2 or Form 1099, Schedules C or F, etc.)
    • A valid U.S. federal or state government-issued identification, such as a driver’s license, state ID or passport, as well as at least one form of identification different from the first document provided. This may include a U.S. social security card, mortgage statement, lease agreement or utility bill with current address, car title, voter registration card or birth certificate.

If you receive one of these letters, follow all the provided steps to supply the IRS with all the information it needs to confirm whether you’re a victim of identity theft. There is no need to file a Form 14039, Identity Theft Affidavit. To obtain assistance with resolving your identify theft letter, be sure to contact Doeren Mayhew’s tax advisors today.