Will IRS hold my refund if I don't respond to identity verification?

Hate to be the bearer of bad news, but if you got an identity verification letter, your refund is basically hostage until you complete it. 😬 The IRS doesn't mess around with this stuff anymore - too much fraud happening. You have exactly ZERO chance of getting your refund without verification. And the clock is ticking... they typically give you 30 days to respond before things get even more complicated!

It's like being stuck at a security checkpoint - you're not getting through until they check your ID. I ignored my verification letter last year thinking it was optional. Big mistake. My refund was like a car stuck in park - completely frozen for 4 months until I finally verified. The IRS is like that strict teacher who won't budge on deadlines - they hold firm on these requirements. Don't make my mistake!

I wonder if you've considered how much time this might take to resolve if you wait? When I got my verification letter while working abroad, I thought I could handle it when convenient. Two months later, still no refund and countless failed attempts to reach the IRS. Have you tried calling them? I finally used Claimyr (https://youtu.be/_kiP6q8DX5c) and got through to an agent in about 15 minutes who confirmed they won't process anything until verification is complete. Might be worth getting this sorted sooner rather than later?

Have you checked if you're eligible for the overseas verification alternatives? As of March 15, 2024, the IRS updated their identity verification options for military and foreign stationed taxpayers. Did your letter specifically mention the ID.me process or the in-person verification?

I ignored my verification letter last year thinking it wasn't important. Big mistake! My refund was held for 9 months, and I ended up having to verify in person anyway. By the time I got my $4,200 refund, I had already missed the opportunity to use it for my daughter's school expenses. The worst part was explaining to my wife why we had to put those expenses on a credit card when we should have had the cash from our refund. Don't be like me!

Just to clarify what others have said - the verification is absolutely mandatory, not optional. The question isn't whether you'll need to verify, but when and how. Wouldn't it be better to handle it now rather than potentially complicating your tax situation for next year too? The IRS has special procedures for military stationed overseas - have you looked into those specific options that might make this easier for your situation?

I was in almost the exact same situation last year while stationed in Okinawa. After trying to navigate the verification process myself for weeks, I finally discovered you can request a military-specific accommodation. I contacted the taxpayer advocate through my base's legal office, submitted my verification documents there, and they handled everything. Refund was processed within 3 weeks after that. The key was working through the base legal office - saved me months of headaches!