What Triggers an IRS Identity Verification Hold and How to Resolve It

Why the IRS places a verification hold

The IRS uses automated checks and cross‑matching of wage, Social Security, and filing-history data to stop fraudulent filings. When a return trips those checks — for example, because of mismatched names/SSNs, duplicate returns using the same Social Security Number, or large changes in income — the IRS can pause processing and place an identity verification hold to protect you from tax‑related identity theft (IRS identity verification guidance).

Common triggers (real examples from practice)

• Mismatched employer reporting: wages on your W‑2 or 1099 don’t match what the IRS has on file. In my practice, a W‑2 reporting a maiden name while the return used a married name triggered a 5071C notice.
• Duplicate filings: someone else has already filed a return under your SSN (or the IRS detects two returns filed for the same SSN).
• Unusual refund amounts or filing patterns: sudden large refunds, multiple credits, or returns filed from a new IP/location.
• Recent life changes: name, address, or job changes that weren’t updated with SSA or employers.

How you’ll hear about it

The IRS usually sends a letter (commonly Letter 5071C or other proof‑of‑identity notices) instructing you how to verify identity online or by phone. Do not ignore these notices — they are actionable instructions, not general warnings (IRS: Letter 5071C).

Step‑by‑step: how to resolve a verification hold

1. Read the IRS letter immediately and follow its instructions. The letter will list a phone number and/or direct you to the IRS Identity Verification Service.
2. Verify online when offered. The IRS directs many taxpayers to verify via its secure identity‑verification page — it’s faster and creates a record of your response.
3. If you can’t verify online, call the phone number on the notice or use the number on IRS.gov. Be prepared with: government photo ID, a prior‑year tax return, Social Security card, W‑2s/1099s, and proof of address (utility bill).
4. If the hold is due to identity theft, complete Form 14039 (Identity Theft Affidavit) and follow the IRS identity‑theft recovery steps (IRS Form 14039).
5. If verification via phone/online doesn’t clear the hold, you may need an in‑person appointment at a Taxpayer Assistance Center — the Taxpayer Advocate Service is an option if your case is taking too long (TAS: IRS Taxpayer Advocate Service).

Typical timing and expectations

• Simple verifications (online or by phone) can release the hold within days to a few weeks.
• Cases involving identity theft, duplicate filings, or mismatched third‑party reporting can take several weeks to months. Timelines vary with IRS workload and case complexity.

What to do about related issues

• If employer data is wrong, contact your employer or payer to correct W‑2/1099 and request a corrected form.
• If someone filed under your SSN, file Form 14039 and monitor IRS identity‑theft instructions.
• Track your refund and case status with “Where’s My Refund?” or your IRS online account and keep records of all correspondences (IRS refund tools).

Tips that reduce the chance of a hold

• File electronically and double‑check SSNs, names, and addresses before submitting.
• Keep personal records current with SSA and your employer.
• If you expect a complex return or large refund, consult a tax pro to avoid avoidable mismatches.

When to get professional help or escalate

• If you don’t get a response from the IRS after you’ve followed the letter’s instructions, contact the Taxpayer Advocate Service (TAS) for help with prolonged delays.
• Consider a CPA or EA if the hold involves duplicate returns, identity theft, or complicated wage/1099 reconciliation — a practitioner can file power of attorney Form 2848 and communicate directly with the IRS on your behalf.

What to expect after resolution

Once your identity is verified or discrepancies resolved, the IRS resumes processing. If the hold delayed a refund, it will issue the payment once processing completes; you won’t need to file a new return unless instructed.

Resources and authoritative guidance

• IRS — Identity Verification Letter (Letter 5071C) and online identity‑verification instructions: https://www.irs.gov/identity-theft-fraud-scams/identity-verification-letter-5071c (IRS).
• IRS — Identity Theft Central and Form 14039 (Identity Theft Affidavit): https://www.irs.gov/identity-theft-fraud-scams and https://www.irs.gov/forms-pubs/about-form-14039 (IRS).
• Consumer Financial Protection Bureau — identity theft resources: https://www.consumerfinance.gov/consumer-tools/identity-theft/ (CFPB).
• Taxpayer Advocate Service: https://www.taxpayeradvocate.irs.gov/ (TAS).

Further reading on FinHelp

• IRS Identity Verification Requests: How to Respond Safely and Quickly — guidance on verifying identity and safe response steps. (https://finhelp.io/glossary/irs-identity-verification-requests-how-to-respond-safely-and-quickly/)
• Avoiding Identity‑Related Refund Holds: Proactive Steps Taxpayers Can Take — practical pre‑filing checks to reduce hold risk. (https://finhelp.io/glossary/avoiding-identity-related-refund-holds-proactive-steps-taxpayers-can-take/)

Professional note and disclaimer

In my 15+ years advising taxpayers, quick response to IRS verification notices is the single biggest factor that shortens delays. This article is educational and not personalized tax advice; if your situation is complex, consult a qualified tax professional or the IRS directly.