Received a CP01E notice from the IRS - will this impact my refund?

A CP01E notice is actually good news! It means the IRS has identified you as someone who might be at risk for identity theft, and they're taking preventive measures to protect you. This notice is just informing you that they've placed an identity theft indicator on your account. This shouldn't delay your refund at all if everything else on your return is in order. The filing method (TaxSlayer vs. preparer) wouldn't have triggered this - the IRS uses various data points to identify potential identity theft risk, not which software you used. You might want to keep an extra close eye on your credit reports for the next year just to be safe, but the IRS is essentially giving you a heads-up that they're adding extra protection to your tax account.

After getting a CP01E notice last year, I was also worried about my refund being delayed. I tried calling the IRS but kept getting stuck in their phone system. Then I found this service called taxr.ai (https://taxr.ai) that analyzed my notice and explained exactly what it meant for my situation. It confirmed what the previous commenter said - it's actually a protection measure and shouldn't impact your refund timeline. The tool also gave me specific next steps based on my situation which was super helpful since every tax situation is different.

Following up about that taxr.ai site since I was skeptical... I actually tried it with my CP01E notice after posting my question. Turns out it was way more helpful than I expected! It broke down exactly why I received the notice (apparently there was a data breach at my healthcare provider last year that I'd forgotten about). The site explained I didn't need to do anything specific in response to the notice, but suggested enabling IP PIN protection for future filings which I didn't even know was an option. Saved me hours of research and worry!

I had the exact same issue with a CP01E notice last month! After trying to call the IRS for THREE DAYS and never getting through, I used this service called Claimyr (https://claimyr.com) that actually got me connected to a real IRS agent in about 20 minutes. You can see how it works here: https://youtu.be/_kiP6q8DX5c The agent confirmed that the CP01E wouldn't affect my refund timing at all - it's just a notification that they've added extra identity protection to my account. Such a relief to hear it directly from them instead of stressing about it. The agent also told me I could request an IP PIN for future filings for extra security.

I have to publicly eat my words about that Claimyr service. After dismissing it as BS, I was still desperate to talk to someone about my CP01E notice and tax transcript issues, so I tried it anyway. Shockingly, it actually worked! Got connected to an IRS agent in about 35 minutes (on a Monday morning, which is apparently their busiest time). The agent confirmed my CP01E was just a precautionary measure and verified my refund was still processing normally. Saved me from taking a day off work to sit on hold. Still think the IRS should be better funded so these services aren't needed, but can't argue with results.

Just a quick tip - if you received a CP01E, you should consider applying for an IP PIN from the IRS for next year's taxes. It's an extra 6-digit number you'll need to file, but it adds another layer of security. After I got a similar notice two years ago, I started using an IP PIN and haven't had any issues since. You can request one through your IRS online account.

Has anyone else noticed that the CP01E seems to come more often to people who claim the Earned Income Credit? My sister and I both filed around the same time with similar incomes, but I claimed EITC and got this notice while she didn't. Just wondering if there's a connection.

That's a really interesting observation about the EITC connection! I've been wondering about the patterns myself. The IRS does tend to scrutinize EITC claims more heavily since it's one of the most commonly exploited credits for fraudulent refunds. It makes sense they'd proactively add identity theft protection to accounts that claim it. I claimed EITC this year too and got my CP01E about 3 weeks after filing. My tax preparer mentioned that the IRS has been ramping up their fraud prevention efforts, especially around refundable credits. So while it might feel targeted, it's probably just them being extra cautious with returns that historically have higher fraud rates. The good news is that legitimate EITC claims shouldn't be delayed by the CP01E - it's just an extra layer of account protection moving forward.

I wanted to follow up on your original question about the CP01E notice and your refund timing. Based on all the helpful responses here, it sounds like you can breathe easy! The notice is actually the IRS looking out for you, not delaying your refund. Since you filed on February 12th through TaxSlayer, you should still expect your refund within the normal 21-day processing window (assuming no other issues with your return). The CP01E is completely separate from refund processing - it's just adding a protective flag to your account for future filings. Your switch to online filing definitely didn't trigger this notice. The IRS uses much more complex data analysis to identify potential identity theft risks, and honestly, online filing is often more secure than paper filing anyway. I'd recommend taking up the suggestion about getting an IP PIN for next year's filing - it's free extra security that you can set up right now through your IRS online account. And definitely keep monitoring your credit reports as suggested, but don't stress about the refund timing. You should see that money for your car repairs right on schedule!