It is mid-March 2026. You check your mailbox expecting to find your refund check, but instead, you find an official envelope from the Department of the Treasury. Panic is a normal reaction, but at Carol's Services, we want to give you peace of mind: receiving a letter from the IRS doesn't automatically mean you are in trouble or under audit. In fact, it is usually a routine security step.

1. Why did the IRS send you this letter?

Due to the increase in electronic fraud, the IRS has implemented much stricter security filters this year. The most common reason your refund is frozen is that they need to Verify Your Identity (usually through letters 5071C, 5747C, or 6331C).

• Protection in your favor: The government just wants to make sure it was really you who filed the return and not someone trying to steal your money using your Social Security Number or ITIN.
• Missing information: Another common reason (Letter 12C) is that you forgot to include a W-2 form or a Health Insurance Marketplace document (Form 1095-A).

2. Exact steps to resolve it and release your money

The worst thing you can do is get scared and throw the letter in the trash. Your refund will remain frozen indefinitely until you respond. Follow these steps:

• Read the top right corner: There you will find the letter number (e.g., LTR 5071C) and the tax year it refers to.
• Follow the instructions: Most identity verifications can now be done securely online through ID.me or by calling the direct number listed on the paper.
• Have your documents handy: They will ask for your current year's tax return, the previous year's return, and your official ID.