When it comes to taxes, the IRS doesn’t take chances, especially when identity theft is a possibility. That’s why taxpayers sometimes receive a CP03 notice.
This follow-up letter from the IRS is part of their effort to ensure that your identity hasn’t been compromised, and that no one else is trying to claim your refund or use your Social Security number fraudulently.
If you’ve received a CP03 notice, you’re probably feeling anxious, maybe even frustrated. But don’t worry—we’ll break down exactly what this notice means, why you received it, and what steps you need to take next.
What Is a CP03 Notice?
The CP03 notice is a letter the IRS sends as part of their identity verification process. It usually follows a taxpayer-initiated or IRS-identified potential case of identity theft.
It doesn’t always mean that someone has stolen your identity, but it does mean the IRS wants to be sure you’re the person who filed the return in question.
The notice typically states that the IRS has received a tax return using your Social Security number and that they need to verify your identity before continuing with any refund processing or tax account updates.
Why Did You Get a CP03 Notice?
There are several reasons the IRS may send you a CP03 notice. Here’s how it usually happens:
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Unusual return activity: Your return may show signs of fraud, such as suspicious income levels, sudden changes in filing status, or unusual credits or deductions.
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Duplicate returns: The IRS has received more than one return using your Social Security number.
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Previous identity theft cases: If you’ve dealt with identity theft before, the IRS may take extra steps to confirm your identity.
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Inaccurate or mismatched information: If the return includes information that doesn’t align with IRS records, they may flag it for verification.
Receiving this notice doesn’t necessarily mean you’re a victim of fraud—but it does mean the IRS is taking steps to protect your identity and your tax information.
What the CP03 Notice Includes
The CP03 notice will generally include the following:
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Your name and address
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The date the IRS sent the letter
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Your taxpayer identification number (usually your Social Security number)
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A statement that the IRS has received a return with your information and needs to verify your identity
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Instructions on what to do next
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A deadline to respond
It’s important not to ignore this notice. Delaying your response could result in delays in your refund, or worse, complications with your tax account.
What To Do If You Receive a CP03 Notice
Here’s how to handle a CP03 notice effectively:
1. Read the notice carefully
Start by reading the entire CP03 notice thoroughly. Make sure it’s legitimate—it should have the IRS letterhead, contact information, and detailed instructions for the next steps.
2. Do not ignore it
Even if you’re sure your return was accurate, the IRS needs confirmation from you. Ignoring this notice can lead to delays in processing your return or releasing your refund.
3. Follow the instructions provided
The CP03 notice will typically instruct you to do one of the following:
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Call the IRS using the number listed in the notice
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Use the IRS Identity Verification Service online
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Visit a local IRS office (with an appointment)
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Mail requested documentation to confirm your identity
4. Gather your documents
To verify your identity, you may need:
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Your prior year’s tax return
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The tax return referenced in the notice
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A government-issued photo ID (driver’s license, passport, etc.)
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Proof of address (utility bill, lease agreement, etc.)
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Social Security card or ITIN letter
Be sure to have these ready before calling or visiting the IRS.
5. Respond by the deadline
The CP03 notice will specify a response deadline. Make sure to act before that date to avoid delays or complications.
What Happens After You Respond?
Once you verify your identity, the IRS will:
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Continue processing your tax return
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Release any refunds you may be owed
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Update their records with your confirmation
If you were not the one who filed the return, the IRS will start an investigation into potential identity theft. You may need to file a new return, complete Form 14039, and monitor your account for further activity.
What If You Didn’t File a Return?
If you receive a CP03 notice and you didn’t file a return, this could be a red flag that someone is trying to commit tax fraud using your information.
In this case:
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Contact the IRS immediately using the number in the notice
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Let them know you didn’t file the return
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Complete Form 14039, the Identity Theft Affidavit
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Place a fraud alert or credit freeze on your credit reports with the major credit bureaus
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Monitor your financial accounts and IRS records for any further suspicious activity
Tips to Protect Yourself from Future Identity Theft
Here’s how you can help protect yourself from identity theft in the future:
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Use strong, unique passwords for online tax accounts and financial logins
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Be cautious of phishing scams—never click on suspicious links or share your SSN via email
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Shred sensitive documents before discarding them
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Use IRS tools like an Identity Protection PIN (IP PIN) to prevent unauthorized tax filings
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Check your credit reports regularly for unfamiliar accounts or inquiries
When to Call a Tax Attorney
Sometimes, resolving issues related to a CP03 notice can be more complex—especially if identity theft has occurred, or you’re having trouble proving your identity. This is where having a tax attorney in your corner can help.
You should consider calling a tax attorney if:
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You’ve been a victim of identity theft and need help protecting your rights
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You’re being asked to provide documentation that you no longer have access to
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Your case is delayed, or the IRS isn’t responding to your verification
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You want to ensure your records are corrected and protected moving forward
At Silver Tax Group, our attorneys bring over four decades of experience in federal tax defense. We know how to work with the IRS, cut through red tape, and resolve complex issues efficiently.
If you’ve received a CP03 notice, we can guide you through the process and make sure your identity and your tax return are protected.
Schedule a Free Consultation
Receiving a CP03 notice can be unsettling, but it’s not the end of the world. Think of it as the IRS doing its due diligence to make sure your identity and tax information are secure. The key is to respond promptly, follow the instructions carefully, and get help if needed.
If you need help understanding your CP03 notice or dealing with any other tax issue, Silver Tax Group is here to help. Contact us today for a free consultation, and let us stand up to the IRS on your behalf.
