The CP01 Notice is a notice from the IRS that confirms a taxpayer’s claim of identity theft and alerts the filer that the IRS has placed an identity theft indicator on the taxpayer’s account. The notice serves to protect the taxpayer’s identity and prevent any fraudulent activity on their tax account. The notice is not always a request for response; it only acknowledges the identity theft claim and adds an indicator on the tax return.
It’s never fun to receive a letter from the IRS, especially one involving identity theft. But receiving a CP01 Notice from the IRS could actually be a good thing. Why?
Keep reading to learn more about the CP01 Notice and what it means for your tax return.
What is the CP01 Notice?
The CP01 Notice is a notice from the Internal Revenue Service (IRS) that confirms a taxpayer’s claim of identity theft. This notice also alerts the filer that the IRS has placed an identity theft indicator on the taxpayer’s account. This is done to protect the taxpayer’s identity and prevent any fraudulent activity on their tax account.
If you receive a CP01 Notice, it’s important to follow the instructions in the notice carefully and take steps to protect your identity. This could include monitoring your credit report, filing a police report, and reporting any suspicious activity to the IRS.
How to respond to the CP01 Notice
Fortunately, you don’t need to worry about responding to a CP01 Notice since this letter only acknowledges your identity theft claim and adds an indicator on your return. However, be sure to read the complete notice carefully as there may be more instructions on how to further protect your identity.
As mentioned previously, one way to do this could be by monitoring your credit report through one of the credit monitoring services below.
FAQs
Will the identity theft indicator affect my account?
While the indicator won’t affect your ability to file your taxes or receive your return, it will affect how long the process takes. The presence of the identity theft indicator on your account can result in additional scrutiny from the IRS when processing your tax returns and other tax-related transactions. This may result in delays in processing your tax return and refund, and you may be required to provide additional documentation to verify your identity. That said, a little extra time is a small price to pay for identity protection.
How long will the indicator remain on my account?
The length of time that the identity theft indicator remains on your tax account depends on the individual circumstances of the case. In general, the indicator will remain on your account until the issue of identity theft is resolved and the IRS is satisfied that there is no longer a risk of fraudulent activity on your account.
If you have reported identity theft to the IRS, the agency may work with you to resolve the issue and remove the identity theft indicator from your account as soon as possible. This may involve providing additional documentation to verify your identity, working with law enforcement to investigate the identity theft, or taking other steps as necessary.
What if someone else uses my SSN to file a fraudulent tax return?
Because of the indicator placed on your account, a fraudulent tax return filed with your SSN will alert the IRS. This will result in additional research to determine whether the tax return is accurate or fraudulent. If fraudulent, the tax return won’t be processed.
Key Takeaways
- The CP01 Notice is a notice from the IRS that confirms a taxpayer’s claim of identity theft. It also alerts the filer that the IRS has placed an identity theft indicator on the taxpayer’s account to protect their identity.
- Taxpayers who receive a CP01 Notice should follow the instructions carefully and take steps to protect their identity. This may include monitoring their credit report and reporting any suspicious activity to the IRS.
- A fraudulent tax return filed under a taxpayer’s SSN will trigger the identity theft indicator placed on their account, which will result in additional research by the IRS to determine whether the tax return is accurate or fraudulent.
View Article Sources
- Understanding Your CP01 Notice — IRS
- Tax Fraud Alerts — IRS
- IRS Letters and Notices: What To Do If You Got One — SuperMoney
- 10 Common Mistakes When Filing Your Taxes — SuperMoney
- Tax Deductions and Credits List: Complete Guide for 2023 — SuperMoney
- When Does it Make Sense to Itemize Tax Deductions? — SuperMoney
- How To Respond To IRS CP14 Notice — SuperMoney
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- How to Respond to IRS Notice of Underreported Income CP-2000 — SuperMoney
- How to Respond to an IRS Notice of Deficiency Letter CP531 — SuperMoney
- How to Respond to IRS Letter 3500 – Interim Letter — SuperMoney
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