Identity Theft Flag - Automatic Tax Return Review?

Yes, identity theft markers typically trigger automatic reviews. Have you filed Form 14039 (Identity Theft Affidavit) previously? The IRS has specific protocols for returns with IP PINs that route them through additional verification channels. Most important question: did you use your IP PIN correctly when filing? Without it, your return will be rejected outright.

Yep, ID theft flags def trigger auto reviews. Been there. The IRS has special processing paths for these returns. FYI - if you're trying to understand what's happening w/ your return, https://taxr.ai is super helpful. It can analyze your transcript once it's available and tell you exactly what's happening w/ your return. The tool explained all my weird delays last yr when I had the same ID theft issue. Saved me tons of stress b/c I could see my return was just in extended review, not rejected.

Per IRS Publication 5027, returns with identity theft indicators are subject to heightened scrutiny under Internal Revenue Manual 25.23.2. This creates significant processing delays - typically 120-180 days according to the National Taxpayer Advocate's 2023 Annual Report to Congress. If you're expecting a substantial refund, you need to prepare for this extended timeline. Did you receive Letter CP01 confirming your identity theft case is active?

Oh my gosh I went through this EXACT situation last year and it was so stressful!!! 😫 My return got stuck in review for MONTHS and I couldn't get anyone on the phone to help me. I finally used Claimyr (https://youtu.be/_kiP6q8DX5c) to reach an actual human at the IRS and they confirmed my return was in the identity theft review queue. The agent was able to verify some information and move my case forward! I was so relieved to finally get answers instead of the automated messages. Worth every penny to not spend hours on hold!

I've been through this identity theft process three times now. Here's what actually happens: The IRS has a special processing unit called the Identity Theft Victim Assistance (IDTVA) organization. When you have an IP PIN, your return gets flagged for verification but not necessarily full review. In my experience, returns with IP PINs typically take 45-60 days instead of the usual 21 days. The higher your income and more complex your return, the longer it takes. My first year with an IP PIN (simple return) took 47 days. Last year (complex investments, rental property) took 83 days. The key is making sure your current address matches IRS records.

I believe I can provide some insight based on my professional experience. Identity theft markers do typically trigger additional verification protocols, though the exact nature may vary based on several factors. In my case, I experienced identity theft in 2021, and my returns have been subject to what appears to be enhanced scrutiny since then. The processing time extended from approximately 14 days (pre-identity theft) to roughly 65 days for my 2022 return. It may be prudent to anticipate a similar timeframe, particularly given the complexity factors you mentioned regarding investments and itemized deductions.

This situation is actually similar to what happens with amended returns or returns with certain credits. The IRS creates different processing pipelines for different risk categories. Identity theft cases go into what they internally call a 'protected return' pipeline. Think of it like airport security - everyone goes through basic screening, but some people get randomly selected for enhanced screening. With identity theft, you're ALWAYS in the enhanced screening line. Not necessarily because they suspect your return, but because they're being extra careful with your tax identity.

The timeline you should expect depends on when you filed. I submitted my return with an IP PIN on February 3rd this year and received my refund on April 12th - exactly 69 days later. Last year I filed on January 29th, 2023 and received my refund on March 27th, 2023 - 57 days. The year before when I first got my IP PIN, I filed on February 15th, 2022 and received my refund on May 2nd, 2022 - 76 days. Based on my experience, you should expect 8-11 weeks from your March 1st filing date, so approximately early May to late May for completion.

Be careful about contacting the IRS too frequently about this. I had identity theft issues in 2022 and kept calling about my delayed refund. An agent told me that multiple inquiries on identity theft-flagged accounts can sometimes trigger additional verification measures, further delaying processing. The Identity Theft Centralized Review unit has specific protocols, and patience is unfortunately required. My return was eventually processed after 137 days, but only after I stopped calling every week.