Why is the IRS Saying My Information is Wrong for 2022 Refunds?

It’s that time of year again when you start preparing your tax return for the upcoming year. However, instead of simply receiving your tax refund, you may receive a notice from the IRS indicating that your information is incorrect and that they need additional documentation to verify it. This can be a frustrating situation, especially if you were expecting a refund. But why is the IRS saying your information is wrong?

Understanding Verification of Identity

One reason the IRS may be saying your information is incorrect is due to the Verification of Identity (VOI) process. The VOI process is designed to protect taxpayers from identity theft, especially in situations where there may be conflicting information on a tax return. This can include social security numbers, names, birthdates, or even financial information. If the IRS detects any inconsistencies between the information on your tax return and various databases, they may flag it for VOI verification.

Common Reasons for VOI Verification

There are several reasons why the IRS may flag your tax return for VOI verification:

1. Unreported Income

If the IRS detects that you have received undeclared income, they may conduct VOI verification to confirm your identity before issuing a refund.

2. Change of Address

If you have recently moved and filed a change of address with the post office, the IRS may conduct verification to ensure that the tax return is being filed by the right person.

3. Identity Theft

If the IRS suspects that you may have been a victim of identity theft, they may conduct verification to prevent fraudulent refunds from being issued in your name.

What You Should Do?

If you receive a notice from the IRS stating that your information is incorrect, you will need to provide additional documentation to verify your identity. The IRS usually provides a list of acceptable documents that you can submit, including a driver’s license or passport.

It’s essential to act promptly once you receive the notice. The best course of action is to collect all the necessary documents and submit them to the IRS as soon as possible.

The Takeaway

While it may be frustrating to receive a notice from the IRS indicating that your information is incorrect, it’s important to remember that it’s for your protection. VOI verification is a standard process that the IRS uses to prevent identity theft and fraudulent tax returns. By providing the necessary documents, you can quickly resolve the issue and receive your refund.

In summary, if you receive a notice from the IRS stating that your information is incorrect, don’t panic. Take the time to collect the necessary documents and submit them to the IRS as soon as possible. By doing so, you can ensure that there are no further delays in processing your refund.