I Verified My Identity With the IRS. Now What Happens Next?
Learn what to expect after verifying your identity with the IRS, including processing timelines and handling potential follow-up actions.
Verifying your identity with the IRS is a critical step to ensure your tax return is processed accurately and securely. This process helps protect against fraud and identity theft, which are significant concerns for taxpayers.
Timeline for IRS Processing
After verifying your identity, the time it takes for the IRS to process your tax return can vary. The IRS generally processes returns within 9 weeks, but this can be influenced by factors such as the complexity of your return, the time of year, and whether additional reviews are necessary. During peak tax season, processing times may lengthen due to high volumes of returns.
The IRS uses automated systems to identify errors or discrepancies. If flagged, your return may require manual review, which can extend the processing time. This is particularly common for returns involving complex deductions or credits, such as the Earned Income Tax Credit (EITC) or Child Tax Credit (CTC), which are subject to additional scrutiny under the Protecting Americans from Tax Hikes (PATH) Act.
In some cases, the IRS may request further information, which can also impact the timeline. Responding promptly to any IRS correspondence and keeping your contact information up to date are essential to avoid unnecessary delays.
Checking Refund Status
Tracking the status of your refund is straightforward with the IRS’s “Where’s My Refund?” tool, available on their website and mobile app, IRS2Go. Taxpayers can check their refund status 24 hours after an e-filed return is received or four weeks after mailing a paper return. The tool updates daily, usually overnight.
To use the tool, you’ll need your Social Security number or Individual Taxpayer Identification Number, filing status, and the exact refund amount from your tax return. The tool provides updates across three stages: Return Received, Refund Approved, or Refund Sent.
While the IRS aims to issue most refunds for e-filed returns within 21 days, certain circumstances, such as claiming the EITC or Additional Child Tax Credit, may result in delays. Under the PATH Act, refunds tied to these credits cannot be issued before mid-February to allow for verification.
Additional Documentation Requests
After verifying your identity, the IRS may request further documentation to confirm the accuracy of your tax return. This often occurs when discrepancies arise between your reported information and data from third-party sources, such as Form W-2 or 1099. For example, if your reported income does not match employer records, the IRS may seek clarification.
It’s important to respond promptly to these requests to avoid delays. The IRS will specify the required documents, such as receipts, bank statements, or proof of deductions. For instance, if you claimed significant medical expenses, you may need to submit invoices or payment records. All documentation should be clear and well-organized before submission, as incomplete or illegible information can lead to further inquiries.
Depending on the request, you may be able to upload documents through the IRS’s online portal or mail physical copies. Pay close attention to any deadlines in the IRS notice, as missing them could result in penalties or interest charges. Retain copies of all submitted materials for your records, as they may be needed in the future.
Handling Adjustments to Your Return
The IRS may adjust your tax return if discrepancies are found during their review. These adjustments can impact your reported income, deductions, or credits. For instance, changes to charitable deductions under tax code provisions could alter your taxable income and overall tax liability. Carefully review any adjustment notices to understand the reasons behind the changes.
Understanding the tax laws and regulations that led to the adjustments can help you respond effectively. For example, adjustments related to depreciation expenses may involve compliance with Modified Accelerated Cost Recovery System (MACRS) rules. If you believe an adjustment is incorrect, you can contest it by providing additional documentation or explanations. Consulting a tax professional can be invaluable in navigating these situations.
If You Receive Another IRS Notice
Even after verifying your identity and addressing initial issues, you may receive additional IRS notices. These notices may highlight further discrepancies, request more information, or explain adjustments to your return. Each notice includes a notice number, typically in the upper right corner, which indicates the specific issue. For example, a CP2000 notice often relates to unreported income, while a CP12 notice addresses refund adjustments due to calculation errors.
Read the notice carefully to understand the issue and required next steps. If supporting documentation is needed, ensure it is submitted within the specified timeframe, usually 30 days, to avoid penalties or interest. Always verify the legitimacy of IRS notices, as scams are common. Cross-check the notice number and contact the IRS directly through official channels to confirm authenticity.
If you disagree with the notice, you can appeal the IRS’s findings. This process may involve submitting a written explanation and supporting evidence to the address provided in the notice. For formal disputes, you can file a petition with the U.S. Tax Court within 90 days of receiving a statutory notice of deficiency. Keeping detailed records of all correspondence and actions is critical, especially if the issue escalates. Working with a tax professional or attorney experienced in IRS disputes can also help protect your interests.