IRS 5071C Letter: Verify Your Identity (Step by Step)

Written by CA Sumit ChandwaniChartered Accountant & Founder · Reviewed by Minal Bihani, EA

A 5071C letter isn't an accusation — it's a checkpoint. The IRS flagged your return for possible identity theft and won't release your refund until it confirms you're really you. The fix is quick if you do it right.

Why did I get a 5071C letter?

The IRS's fraud filters flagged a return filed under your Social Security number as potentially identity theft. It doesn't mean you did anything wrong — it means the IRS wants to confirm the return is genuinely yours before issuing any refund.

Is the 5071C letter legit?

Real 5071C letters come by mail, never by email, text, or phone call. The IRS does not initiate identity verification by phone. If someone calls claiming to be the IRS about a 5071C, it's a scam — hang up.

How to verify your identity

Online — the fastest route, through the IRS identity verification service (ID.me). You'll need the 5071C letter, the tax return it refers to, a prior-year return, and supporting documents
By phone — call the number on the letter (expect long holds)
In person — at a Taxpayer Assistance Center if online and phone don't work

TipHave both the return in question and your prior-year return in front of you before you start — the verification asks specific figures from both. Non-resident filers and those without a prior US return often can't use the online tool and need the phone or in-person route.

What happens after you verify?

If you confirm the return is yours, the IRS resumes processing — refunds typically follow within about 9 weeks. If you tell them the return is not yours, you've just stopped identity theft, and the IRS begins its fraud process to protect you.

For non-residents and foreign founders

If you filed a 1040-NR or a return for a US entity and got a 5071C, the online ID.me path often won't work without US credit history. We handle the verification routes that do work for international filers.

⏱ The IRS doesn't wait — and neither should you.

Your refund is frozen until you verify. The longer you wait to respond, the longer your money sits with the IRS. This one is usually fast to resolve — but only once you act.

Get a free case review Talk to a CPA/EA

Frequently asked questions

What is an IRS 5071C letter?

It's a letter asking you to verify your identity because the IRS flagged a return filed under your SSN as possible identity theft. Your refund is held until you verify.

Is a 5071C letter legitimate or a scam?

Genuine 5071C letters arrive by mail only. The IRS never starts identity verification by email, text, or phone call — so a call about a 5071C is a scam.

How do I respond to a 5071C letter?

Verify online through the IRS ID.me service (fastest), by phone using the number on the letter, or in person. You'll need the letter, the return it refers to, and a prior-year return.

How long after verifying a 5071C do I get my refund?

Once you successfully verify and confirm the return is yours, the IRS generally resumes processing and issues refunds within about nine weeks.

What if I can't verify online as a non-resident?

Non-residents and filers without US credit history often can't use the online tool. The phone and in-person routes work, and a CPA/EA experienced with international filers can guide the process.

Part of our IRS Tax Resolution service — a licensed CPA & EA can handle this for you, flat fee.

Refund frozen by a 5071C?

Especially for non-resident and foreign-owned filers, verification can be tricky. We'll walk you through the route that actually works and get your refund moving.

See IRS Tax Resolution Get a free case review

Written by CA Sumit ChandwaniChartered Accountant & Founder · Reviewed by Minal Bihani, EA

Paying freelancers is easy. The reporting behind it is where businesses get fined: missing 1099s, missing W-9s, and workers who were legally employees all along.

If your business pays US contractors, three obligations follow you all year.

1. Collect a W-9 before you pay

Get a signed W-9 from every US contractor before the first payment. It gives you their legal name and TIN — the two things you need at filing time. Chasing W-9s in January from contractors who've moved on is how deadlines get missed.

2. Issue 1099-NEC on time

You report nonemployee compensation on Form 1099-NEC once payments to a contractor cross the reporting threshold for the year (historically $600; recent legislation raises it for payments made after 2025 — check the current figure when you file). The form goes to the contractor and the IRS by January 31.

Payments to corporations are generally exempt (attorneys excepted)
Payments made by credit card or through platforms like PayPal business are reported by the processor on 1099-K instead — don't double-report
Foreign contractors working outside the US get a W-8BEN, not a 1099

TipMissing or late 1099s carry per-form penalties that scale with lateness, and intentional disregard costs far more. Filing a wrong-but-honest 1099 is always cheaper than filing none.

3. Make sure they're actually contractors

The IRS looks at behavioral control, financial control and the relationship. Set their hours, provide the tools, make them exclusive — and you may have an employee, with back payroll taxes and penalties to match. When in doubt, run the facts past a professional before the relationship hardens.

The bottom line

W-9 up front, 1099-NEC by January 31, and honest classification. MOREOFTAX handles contractor reporting, payroll setup and classification reviews as part of bookkeeping and tax plans.

Part of our US Tax Filing service — see how our CPA & EA team handles this for you.

Contractor reporting handled for you

W-9 collection, January 1099 filings and classification checks — bundled into our bookkeeping plans.

See Bookkeeping Get a free quote

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