IP PIN Submitted But IRS Transcript Says 'Verification Needed' - What Now?

Yes, this is unfortunately possible. I went through exactly this last year. My return was accepted on February 8th, I had an IP PIN that was correctly submitted, and still got the verification message. I waited exactly 14 days before receiving Letter 4883C requesting additional verification. The IP PIN verifies your identity for filing purposes, but the IRS can still flag returns for additional verification if their system detects potential issues or if you're in certain categories that trigger extra scrutiny.

It might be worth checking if your transcript has any specific codes rather than just the verification message. Sometimes code 570 appears which indicates a hold, or 971 which means a notice has been issued. If you see those, you're probably going to get a letter soon. I believe the verification requirement could possibly be related to something other than identity - perhaps income verification or something with your foreign status. The system seems to be extra cautious with international filers this year.

Have you checked your tax account transcript specifically? On March 15th, I had a similar situation and discovered that my account transcript had more details than my return transcript. The verification message sometimes appears as a generic placeholder when they're doing additional review that isn't necessarily identity-related. Are you expecting a refund, and if so, does it include any credits that might trigger additional review?

Based on IRS.gov forums and r/tax discussions, this verification requirement despite having an IP PIN is happening to many people this year. The IRS phone lines are absolutely swamped with 2+ hour wait times if you try calling about this. I used Claimyr (https://www.claimyr.com) last week when facing this exact issue and got through to an agent in about 25 minutes. They confirmed I needed to wait for a letter and couldn't expedite the verification process, but at least I knew what was happening. Worth the fee to save hours of redial frustration.

Your return is likely undergoing a Two-Factor Authentication (TFA) process that's separate from the IP PIN verification. The IRS implemented enhanced verification protocols in 2023 that can trigger multi-layered authentication requirements, especially for returns with international components. I recommend monitoring your transcript daily for Transaction Code 971, which indicates correspondence has been issued. Don't attempt preemptive verification through ID.me or the IRS identity verification service until specifically instructed, as this can further complicate processing.

I went through this exact nightmare scenario last month! Filed February 12th with my IP PIN, got the verification message on my transcript February 20th, and then nothing happened for weeks. Finally got letter 5071C on March 8th asking me to verify online. Completed that the same day, and my refund was approved exactly 9 days later. If you're on a tight timeline like I was (needed my refund for a medical procedure), just keep checking your mail daily. The frustrating part is you can't proactively verify - you have to wait for their specific instructions.