IRS Integrity Verification: What Taxpayers Need to Know

The IRS has several measures in place to protect taxpayers and prevent fraudulent activity. One of these measures is the IRS Integrity Verification Process, designed to confirm the legitimacy of tax returns and ensure that refunds are issued to the correct individuals. While this process helps prevent identity theft and fraud, it can also cause delays for some taxpayers. Understanding how it works and what to expect can help you navigate the process more smoothly.

What Is IRS Integrity Verification?

IRS Integrity Verification is a security measure used to verify a taxpayer’s identity before processing their tax return and issuing a refund. This process is triggered when the IRS detects inconsistencies, potential identity theft, or suspicious activity related to a tax return.

The verification process is meant to protect taxpayers from fraudulent returns being filed in their name and to ensure that refunds are issued to the rightful recipients. If your tax return is flagged, you may be required to take additional steps to confirm your identity before your return can be processed further.

Why Might a Tax Return Be Flagged for Verification?

There are several reasons why a tax return may be selected for IRS Integrity Verification:

• Mismatched Information: If the IRS detects discrepancies between your tax return and records from employers, banks, or other agencies.
• Unusual Filing Patterns: Filing from an unfamiliar location, using a new bank account for direct deposit, or claiming credits that differ from previous years.
• Duplicate Returns: If another return has already been filed using your Social Security number (SSN), it may indicate identity theft.
• Use of New Credentials: If you are filing a tax return for the first time or using a new tax preparer, your return may be flagged for additional verification.
• Large Refund Amounts: Returns claiming substantial refunds, especially with refundable credits, may be reviewed more closely.

How Will You Know If You Need to Verify Your Identity?

If the IRS needs you to verify your identity, they will send a notice by mail. The most common notices related to identity verification include:

• Letter 5071C: Requests taxpayers to verify their identity online at the IRS Identity Verification Service website.
• Letter 4883C: Requires taxpayers to call the IRS to verify their identity.
• Letter 5747C: May require an in-person visit to an IRS Taxpayer Assistance Center.

It is critical to respond promptly to these notices to avoid delays in processing your return and receiving your refund.

How to Complete the IRS Integrity Verification Process

If you receive a verification notice from the IRS, follow these steps:

1. Go Online (if applicable): If your notice directs you to use the IRS Identity Verification Service, visit the provided website and follow the instructions.
2. Call the IRS: If your letter requires phone verification, be prepared to provide identifying information, including your prior year’s tax return details.
3. Visit an IRS Office: If instructed, schedule an appointment at a local IRS Taxpayer Assistance Center and bring the required identification documents.
4. Provide Additional Documentation: In some cases, the IRS may request additional documents, such as W-2s, 1099s, or Social Security cards, to verify your identity.

How Does IRS Integrity Verification Affect Taxpayers?

• Refund Delays: If your return is flagged for verification, expect delays in receiving your refund. The verification process can take several weeks, depending on the complexity of the case.
• Additional Documentation Requests: You may need to provide supporting documents to prove your identity, which can add time to the process.
• Possible Fraudulent Activity Alerts: If you did not file a tax return but received an IRS verification notice, it could indicate identity theft. In such cases, you should report the issue to the IRS immediately.

Tips to Avoid Identity Verification Delays

• File Early: Submitting your tax return early reduces the chances of fraudsters filing a fraudulent return in your name.
• Ensure Accuracy: Double-check all personal and financial details before filing to avoid errors that may trigger verification.
• Use the Same Banking and Filing Information: Sudden changes in filing habits, such as using a new bank account for direct deposit, can trigger security reviews.
• Monitor Your Mail: Always respond promptly to IRS notices to avoid further delays.
• Protect Your Personal Information: Be cautious of phishing scams and fraudulent IRS communications. The IRS will never contact you via email, text, or social media to request personal information.

Conclusion

IRS Integrity Verification is an essential safeguard to protect taxpayers and prevent fraudulent tax filings. While it may cause delays for some, understanding the process and responding promptly to verification requests can help ensure a smoother experience. If you receive an IRS verification notice, follow the instructions carefully to confirm your identity and receive your refund without unnecessary complications.