What the letter means
The IRS page explains: “A federal income tax return, Form 1040 series, was filed under your Social Security number (SSN) or individual taxpayer identification number (ITIN).” The IRS needs the taxpayer to verify identity and the return. Its two instructions are short: “If you didn’t file a return: Verify with us. You may be the victim of identity theft.” and “If you did file a return: Verify so we can continue processing your return.”
The CP5071 series includes the CP5071, the 5071C and the CP5071F. IRM 25.25.6 calls the 5071C “Potential Identity Theft During Original Processing with Online Option”; the online option distinguishes it from Letter 4883C, which requires a phone call, and Letter 5447C, used for foreign addresses. Recipients of a pilot Letter 6331C are handled under the 5071C procedures.
Why the client got it
IRM 25.25.6.1.7 says the Taxpayer Protection Program “is responsible for identifying potential identity theft cases that are scored by a set of identity theft models in the Dependent Database (DDb); selected through filters in the Compliance Selection Engine (CSE) system; or manually selected by Return Integrity Verification Operations (RIVO).” The IRS does not publish the filter criteria. A selected return is held without posting. The letter does not mean the IRS concluded the client committed fraud, and it does not mean someone else filed; it means the return cannot be processed until identity is verified.
Timing and what happens if no one verifies
The IRS notice page does not state a response deadline. The consequence of silence is in the IRM: an account marker (TC 971 AC 506 with “WI PRP DDB”) “indicates the return was deemed Id theft because there was no response to the authentication letter.” The IRM adds that a return deemed identity theft “cannot be accepted as a valid return, until the authentication process is complete.” In practice, any refund is held and the return does not post as the taxpayer's return until someone verifies, which can affect later notices for the year.
After successful verification, the IRS says to allow time. The verification service page states: “Wait 2-3 weeks after you use this service to check your refund. It may take up to 9 weeks to process your return after you verify it.” IRM 25.25.6 gives longer timeframes for manually processed and duplicate filing cases.
How to respond
- Confirm the letter is real. Check the letter number and use the IRS.gov verification page or the number on the letter, not a link or number from an email or text.
- Gather what the IRS asks for. The IRS page lists the return for the year on the notice, the prior year return if filed, and supporting documents for each (W-2s, 1099s, Schedules C and F).
- Verify online if possible. The letter points to the Identity and Tax Return Verification Service (the IRS page gives irs.gov/verifyreturn). IRM 25.25.6 says 5071C recipients should first be referred to the online tool before phone authentication.
- If online fails, call the number on the letter. The IRS page warns that the contact information “is for identity and tax return verification only.” Refund status and other account questions go elsewhere.
- As a representative, IRM 25.25.6.3.1 says a POA with a valid Form 2848 (or a durable power of attorney with all the information required on Form 2848) can authenticate, but “The POA must be authorized for all the years addressed in the questioning including the year in question.” If the POA is authorized, “follow all instructions in the IRM as if the POA is the taxpayer.” A Form 8821 designee or third-party designee cannot authenticate; the taxpayer must be on the line.
- If the client did not file, say so during verification. The IRS page adds: “If you verify your return, you don’t need to complete Form 14039, Identity Theft Affidavit, unless we tell you.” For identity theft, see Form 14039 and consider an IP PIN for future years.
If the letter was lost, IRM 25.25.6.6.2 says the TPP letter can be reissued up to two times to the name and address on the return in question. Practitioners should get a Form 2848 (not a Form 8821) covering the current and prior year before calling, because the questions can cover more than one year. See Practitioner Priority Service for other account issues.
What the IRS does next
If verification succeeds, RIVO releases the return for processing, systemically or manually, and any refund follows the processing timeframes above. If the taxpayer says the return is not theirs, the IRS handles it as potential identity theft. If no one verifies, the IRM marks the return as identity theft, and no valid return for the year has posted for that taxpayer, which matters if the client did file; see CP59 for the notice the IRS sends when it has no record of a return.
Related notices
| Letter | Difference |
|---|---|
| Letter 4883C | Phone verification only |
| Letter 5447C | Foreign address version |
| Letter 5747C | In-person verification at a Taxpayer Assistance Center |
| CP01A | Annual IP PIN notice for identity theft victims |
Questions practitioners ask
Can the preparer verify for the client?
Only as a POA with a Form 2848 covering every year the IRS asks about, by phone. A Form 8821 designee cannot authenticate; the taxpayer must be on the call.
Is there a deadline?
The IRS notice page does not print one. The return stays unprocessed until verification, and the IRM marks returns with no response as identity theft.
How long after verifying will the refund come?
The IRS says to check after 2 to 3 weeks and that processing can take up to 9 weeks.
Should the client file Form 14039?
Not if the return is the client's and verification succeeds, unless the IRS asks. If someone else filed, follow the identity theft procedures.
The client never got the letter but the refund is held. What now?
Call the IRS number for TPP. The letter can be reissued, up to two times, to the address on the return in question.