Earned Income Verification Request: Fill & Download for Free

No, that is not true.First, in order to get the EIC, you have to have Earned Income. The vast majority of people who qualify for the EIC are w-2 employees or receiving disability. Profits from a business also count as earned income, but it is exceedingly rare that a business owner would qualify for the EIC, but it does happen (we are talking 0.01% of recipients).Second, the IRS has different levels of audit (for lack of a better way to describe it). The lowest level of audit is a correspondence audit. It is what it sounds like, it is an audit that is conducted all by mail. You get a letter from the IRS raising an issue and requesting documents or suggesting a change, and then you can respond by mail and try to resolve it. The highest level is a field audit by a local IRS agent.With those eligible for the EIC being almost all w-2 employees, the IRS has independent verification of the taxpayer's income via the reported w-2. So long as the individual's tax return matches up with that information, there is zero chance of an audit. The only time you might see a correspondence audit of an EIC claimant is if the individual under-reported income on her tax return and that underreporting is verified by the w-2’s and 1099’s on file at the IRS for that taxpayer.The IRS is not under any secret directive to go after EIC recipients. The IRS is not as behind the times as they once were. They have computers and automated systems that flag issues. The only time the run-of-the-mill middle class or poor taxpayer would get flagged for anything is if there is a calculation error on the tax return, an obvious error, or if there is an underreporting of income.

If you have only been earning that amount for four months, then the usual request for previous years’ income tax returns won’t show this amount of income. So that form of proof is out of the picture.The next form of proof would be bank account statements, specifically statements showing the deposit of funds in the amount you posted.And and then you should also have been paying estimated income taxes for those amounts, assuming no withholding is taking place. The declaration of estimated income along with proof of payments should support your claim of income.And let’s not forget that income verification can be performed by contacting the party that is writing the checks that you are getting.So there you have it - quite a few ways to provide proof of income, even when it is for a short duration. Of course, past performance is no guarantee that the same performance will continue into the future; the landlords just might be most concerned from this perspective.

For the same reason the IRS holds all returns claiming the most common credits, the child tax credit and earned income credit, at the start of tax season, tax fraud is big. It has cost the IRS a substantial loss of tax dollars. The hold they have implemented can greatly reduce that number, as much of tax identity fraud happens by people filing as early as possible… filing to claim the refund before the actual taxpayer does.That being said, if you are awaiting tax identity verification, it means the IRS suspects the return is fraudulent (filed by someone other than you). It's not so uncommon to receive this request in the mail (form 5071C)… and easily resolved (if not fraudulent). The refund delay, approximately 9 weeks, is the frustrating part.This is only done by mail. They do not request identity verification by phone. Just a tip- there are, however, many scammers that will attempt this over the phone.