Identity Verification (5071C) Letter - Spidell

Identity Verification (5071C) Letter

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Message Board Identity Verification (5071C) Letter

  • This topic has 5 replies, 3 voices, and was last updated 2 weeks ago by Lawrence Singer.
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    • #265723
      Lawrence Singer
      Participant

      This week, I’ve had three clients who have received 5071C letters requesting that they verify their identity before the IRS will process their returns.  In the past, maybe one or two clients a year receive these letters.  Seems a bit odd.  Anyone else experiencing an increase in frequency of these letters?  Is there something else going on?

    • #265766
      Diane White
      Participant

      I have heard through a practitioner friend, several of her clients have received them. The clients had large W-2 income and withholding or larger than normal refunds. There is so much identity theft going on.

    • #265770
      Lawrence Singer
      Participant

      What’s unusual about these inquiries is that there was nothing unusual about the returns.  All three clients had modest income and average withholding.  One was due a relatively minor refund (~ $1,500) and two owed a small amount.  All three returns were electronically submitted in the first two weeks of April.  Can’t think of any reason why they might have been flagged by the IRS.

    • #265782
      Diane White
      Participant

      That’s interesting. I wonder if they have been the victims of identity theft subsequent to the returns being filed.

    • #265846
      Mark Bole
      Participant

      two owed a small amount.

      Hmm, so they are questioning the identity of someone who wants to pay the IRS?  Yup, that must be one smart fraudster!  According to IRS web site, “If we don’t hear from you, we may not be able to process your return, issue refunds, or apply overpayments to next year’s estimated tax.”  So I guess balance due returns will not be impacted if the taxpayer does not respond timely.

      If you can confirm that the payment was recorded in IRS system for correct tax year, I would not worry too  much.

       

    • #265869
      Lawrence Singer
      Participant

      One of these clients reports that the check she sent over a month ago has not yet cleared her bank.

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