You’ve gone through the process of submitting your tax return and now the IRS is suddenly asking you to verify your identity, delaying any potential refund from reaching your bank account.
This is a frustrating turn of events, especially for international students navigating the U.S. tax system for the first time, but with identity theft issues impacting millions of taxpayers each year, for the IRS, it’s a necessary precautionary measure.
And you’re not the only one. For the 2024 filing season, the IRS suspended processing of over 1.9 million tax returns pending identity verification.
If you’re one of the unlucky individuals to have their return delayed due to identity verification issues, this article will explain everything international students need to know and how Sprintax can help make your life easier!
Why is the IRS asking me to verify my identity?
The identity verification process from the IRS can be triggered on a random basis, or it could be due to suspicion that a tax return with your name on it is potentially the result of identity theft.
What triggers IRS identity verification?
Potential triggers for identity verification include:
- Discrepancies between your most recent and previous tax filings
- You moved and now have a new address
- Your filing status changed
- Your company had a W-2 data breach
- Your personal identity information has been part of a data breach
Any of the above may have flagged your account with the IRS and triggered the identity verification process.
What will you receive?
Taxpayers whose tax returns have been flagged for possible identity theft will likely have received one of the following letters:
- Letter 5071C, Potential Identity Theft during Original Processing: this letter provides taxpayers with an online verification option, and is the letter issued most widely in cases of potential identity theft
- Letter 4883C, Potential Identity Theft during Original Processing with Online Option: this letter provides taxpayers with just a phone option for identity authentication
- Letter 5447C, Potential Identity Theft during Original Processing; Foreign Address: this letter is issued to international taxpayers and provides both online and phone options for authentication
- Letter 5747C, Potential Identity Theft during Original Processing: this letter is used sparingly and provides an in-person authentication option only
These letters provide taxpayers with several means of authenticating their identity, including online options or directly calling the IRS.
In rare cases, taxpayers will be required to make an appointment at a Taxpayer Assistance Center to authenticate their identity in person.
What to do if you receive an IRS letter?
If you have received a letter, notice or fax from the IRS due to suspicion of identity theft these are the steps you should take:
1. Verify the letter is from the IRS
Unfortunately, tax scams are common. Before you respond to any letters, make sure the letter is real. IRS letters are sent to you via U.S. mail. The IRS won’t email them, and they do not initiate verification requests by phone.
If you are unsure whether a request is legitimate, the IRS have put together a handy page on identifying potential scam communications or you can call the official IRS number (1-800-829-1040) to confirm.
2. Gather your information
Before starting the verification process, make sure to have these documents ready:
- Your IRS letter
- A copy of the previous year’s tax return
- Your current year tax return (if you have already filed)
- Photo ID (driver’s license, state ID, or passport)
The IRS letter will inform you if there is anything else you need.
3. Complete verification
Depending on what letter you receive, you will have three options to verify your identity: online, by phone, or in person.
Verifying online
To verify your identity online you will need to:
- Gather your documents
- Visit the IRS identity verification site (URL provided in your letter)
- Create or login to your IRS account
- Answer some questions about your financial history
Verifying by phone
To verify your identity over the phone:
- Call the Taxpayer Protection Program number listed in your notice
- You will need to have the same documentation ready for verification purposes
If you decide to verify by phone, it is best to call first thing in the morning or about a half hour before they close as IRS phone lines tend to be busy. If you are not currently present in the U.S., it is important to be aware of time zone differences and international call costs.
Verifying in person
If you need to verify your identity in person you will need to:
- Call the Taxpayer Assistance Center number listed in your notice to arrange an appointment
- Bring the following documents to your appointment:
- The letter you received from the IRS
- The Form 10-40 series tax return referenced in the letter
- A prior year tax return, other than the year in the letter, in case additional verification is required
- Supporting documents for each year’s tax return you filed (Form W-2, Form 1099, Schedule C or Schedule F, etc.)
- You will also need to bring the following identity verification documents:
- A valid federal or state government-issued picture identification, such as a driver’s license, state ID, or passport; and at least one of the following:
- Current federal or state government-issued identification that is different from the first document provided
- S. Social Security card
- Mortgage statement with current address
- Lease agreement for a house or apartment with current address
- Car title
- Voter registration card (not the voter registration application)
- Utility bill matching address on ID
- Birth certificate (the IRS no longer accepts Puerto Rican birth certificates issued before July 1, 2010)
- Current school records
4. Wait for IRS processing
After you complete your verification, the IRS will continue processing your tax return. Refunds may still take up to 9 weeks, depending on the complexity of your case.
5. Protect yourself against identity theft
If the IRS flagged your return due to identity theft or if you simply want to better protect your identity, here are some steps you can take:
- Request an Identity Protection PIN (IP PIN) – a 6-digit code that prevents others from filing in your name
- Make sure your online account is secured with a complex, unique password
- Protect your personal and financial information
- Monitor your credit reports for unusual activity
- Report suspected identity theft at IdentityTheft.gov
Receiving an IRS identity verification notice can be stressful, but it’s a safeguard designed to protect your refund and your personal data. The most important thing you can do is respond quickly using the official IRS instructions. With the right documents in hand and a careful eye for scams, you’ll successfully navigate the process and keep your tax identity secure.
Why use Sprintax?
Tax season is stressful enough without worrying about identity theft. Sprintax Returns helps international students and nonresidents to file U.S. tax returns stress-free and claim their maximum tax refund!
Sprintax Returns is the only online federal and state self-prep tax software designed specifically for international students and nonresidents in the U.S. By creating a Sprintax account you can easily prepare a fully compliant 1040NR (nonresident tax return) and form 8843 tax documents.
Sprintax also offers customers the option to sign up for our Post-Filing Service which handles all communication with the tax office on your behalf.
By signing up for the Sprintax Post-Filing Service you can ensure that our tax experts will deal with all the additional communication with the IRS and will take the burden off your shoulders.
