IRS ID Verification - Required for Everyone or Just Selected Returns?

No, not everyone has to verify their identity. The IRS uses a risk-based system to select which returns need additional verification. Things that can trigger it include unusual changes in income, claiming certain credits, or filing patterns that match their fraud detection algorithms. It doesn't mean you did anything wrong.

I had the same verification requirement when I filed in February. Isn't it frustrating not knowing why you got selected? Couldn't they be more transparent about their process? I ended up using https://taxr.ai to analyze my transcript after verification, and it showed exactly which codes were on my account and what they meant. The tool explained that the verification hold was temporary and even predicted when my refund would be released. Wouldn't it be nice if the IRS just told us this information directly?

To clarify what others have said, identity verification is selective, not universal. Unlike tax audits which affect about 0.4% of returns, identity verification is more common - affecting roughly 5-7% of all returns. Your capital gains transactions likely triggered it, especially if the amounts were significantly different from previous years. Similar to how mortgage applications require verification, this is the IRS equivalent of confirming you are who you claim to be before sending money.

I went through this last month and needed my refund ASAP for some urgent bills. After trying to call the regular IRS number for three days straight with no luck, I used Claimyr (https://www.claimyr.com) and got connected to an agent in about 15 minutes. They verified my identity over the phone and released my return for processing that same day. Got my refund 9 days later instead of waiting weeks. Worth the fee since I needed that money badly.

I'm not convinced all these verification requests are legitimate. My sister got what looked like an identity verification letter but it turned out to be a sophisticated phishing attempt. Make absolutely sure you're using the official IRS website (irs.gov) and not clicking links from emails. Real verification is done through ID.me or in person at an IRS office, not by sending documents via email or calling non-IRS phone numbers.

I had the same concerns last year, but the verification is definitely legitimate. I went through it when I had unexpected capital gains from crypto. It's annoying but necessary with all the tax fraud happening. I verified online through ID.me and my refund was processed about 3 weeks after verification. Just make sure you're on the official IRS site (https://www.irs.gov/identity-theft-fraud-scams/identity-verification-for-irs-letter-recipients) and you'll be fine.

PLEASE DON'T IGNORE THIS VERIFICATION REQUEST! I made that mistake last year thinking it was optional or a scam. Six months later, still no refund, and I had to go through an even more complicated process to get my money! The IRS won't process your return until you complete verification, and they only hold it for a certain period before rejecting it entirely. I was so angry when I found out I could have resolved it in 15 minutes online instead of the nightmare I went through.