Tim’s Tax News on the Tenth – June 2023

Every year the IRS scans all tax returns for signs of identity fraud, to detect scammers using stolen Social Security numbers to file fraudulent tax returns and collect refunds. If a return is flagged as suspicious, the IRS reviews the return and sends a letter to the taxpayer notifying them about the potential identity theft. The suspicious tax return will not be processed until the taxpayer responds to the notification letter.

The letter will outline the steps needed for the taxpayer to take, and the taxpayer should follow the steps to get the issue resolved with the IRS. The following are potential identity fraud letters that a taxpayer may receive from the IRS: 

1. Letter 5071C, Potential Identity Theft with Online Option. This letter notifies the taxpayer to use a provided online tool to verify their identity and tax return information. If the taxpayer did not file the return, they can notify the IRS through the online tool.

2. Letter 4883C, Potential Identity Theft. This letter notifies the taxpayer that they will need to call the IRS to verify their identity and tax return information. If the taxpayer did not file the return, they can then call the Taxpayer Protection Program hotline number provided on the letter. 

3. Letter 5747C, Potential Identity Theft In Person Appointment. This letter notifies the taxpayer that they will need to verify their identity and tax return information at a local Taxpayer Assistance Center. If the taxpayer did not file the return they can then call the Taxpayer Protection Program hotline number provided on the letter. 

4. Letter 5447C, Potential Identity Theft Outside the U.S. This letter notifies the taxpayer they will need to use an online tool or call the IRS to verify their identity and tax return information. If the taxpayer did not file the return, they can notify the IRS through the online tool. 

If you would like more details, please do not hesitate to call our office. Our office has been successful in helping taxpayers with IRS and IDOR collection problems for over 30 years. If you have a tax or debt problem, please contact me at 847-705-9698 or thughes@lavellelaw.com and find out how we can help you.

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