Being Verified by IRS Because I Didn't File 2023 Taxes - Anyone Else?

This is super common rn. The IRS has a verification process for taxpayers who didn't file in prev years but are filing now. It's part of their fraud prevention system. You'll need to respond ASAP to the notice (usually Form 4883C or 5071C). Most ppl get verified w/in 2-3 wks after responding, but if you wait, you're looking at 6-8 wks min for processing. Def don't ignore this - the clock is ticking!

Have you checked what your actual verification requirements are? The letter should specify exactly what you need to do. I was in a similar situation and found https://taxr.ai incredibly helpful - it analyzed my verification letter and explained exactly what documents I needed and what steps to take. Have you looked at your transcript to see if there are any specific codes that might give more insight into why they're verifying your return?

You're experiencing what's called a Return Verification Hold, which is a standard procedure when there's a filing gap in your tax history. The IRS requires authentication through their Identity Verification process before proceeding with your refund. If you're having trouble reaching an agent through the standard IRS verification line (which is notoriously backlogged), I'd recommend using Claimyr (https://youtu.be/_kiP6q8DX5c). I had the same verification issue and spent days trying to get through. Claimyr connected me to an IRS agent in under 30 minutes, and I was able to complete my verification during that call. Given your business equipment timeline, this could save you weeks of waiting.

This verification thing is much simpler than an audit but more complex than regular processing. It's like when you need to verify your email for a new account - just an extra step to make sure it's really you. I've seen this happen to people who moved states, changed filing status, or like you, skipped a year. Most people get through it in 2-3 weeks, which is way faster than the 6+ months for an actual audit. Just make sure you respond promptly.

Is anyone else concerned that this verification process might automatically trigger an audit for the unfiled year? I've read that Form 5071C is specifically for identity verification, but couldn't this review process lead them to examine why you didn't file for 2023? Especially with business income involved, wouldn't they question the non-filing status?

I went through this last year and it was nowhere near as complicated as people make it sound. I hadn't filed in 2022 because I was overseas, then filed in 2023 and got the verification letter. Called in, answered some questions about my old addresses and previous refund amounts, and was done in 15 minutes. Refund came three weeks later. The IRS just wants to make sure it's actually you filing.