The LTR 4800C is one of the more intensive verification letters. The IRS is questioning whether the wages and withholding claimed on your return are legitimate. This letter is commonly associated with the IRS's efforts to combat refund fraud, particularly schemes involving fabricated W-2s with inflated withholding designed to generate large fraudulent refunds.
What the IRS Wants
The documentation requirements are extensive. The IRS typically wants copies of all W-2s, pay stubs for the entire year (not just the last one), a letter from your employer on company letterhead confirming your employment dates, wages, and withholding, bank statements showing direct deposit of paychecks, and sometimes a copy of the employer's 941 filing showing the withholding was actually deposited with the IRS.
The IRS is looking for consistency. Do the W-2s match the pay stubs? Do the pay stubs match the bank deposits? Does the employer confirm the employment? If everything lines up, your return is legitimate and the refund gets released.
Why You Were Flagged
Common triggers include a first-time filing with a new employer showing large withholding, withholding amounts that seem disproportionate to income, W-2s from employers the IRS has flagged for fraud, and returns that match patterns associated with known refund fraud schemes.
Being flagged doesn't mean the IRS thinks you committed fraud. It means your return matched a profile that requires manual verification. Legitimate taxpayers get flagged regularly, especially during their first year with a new employer or when changing jobs.
Timeline
Respond completely by the deadline. After the IRS verifies your documentation, refund processing typically takes 6 to 9 weeks. If the IRS can't verify your wages through your employer or their records, the process takes longer.
If you've received an LTR 4800C, call us at (813) 229-7100.