Excellent question. The odds of an RAC-74 confirmation are extremely low, but not zero. They depend heavily on several critical factors, and it’s important to understand what an RAC-74 is to assess the probability.
What is an RAC-74?
An RAC-74 is a specific type of “Request for Confirmation” message sent by the IRS to a tax professional. It’s triggered when the IRS detects a potential “bad address” for a taxpayer on an electronically filed return. The tax preparer must get the taxpayer to verify their address directly with the IRS before the return can be processed.
Key Factors Affecting the Odds:
The odds are not a single number but a combination of risk factors:
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Filing History & Data Mismatch (Highest Impact):
- New Taxpayer to the Preparer: If this is the first time you’re filing with this tax professional or software, the risk is higher.
- Address Discrepancy: The address on the return doesn’t match the address the IRS has on file from your last return, W-2s, or other documents.
- Recent Address Change: You moved and didn’t update your address with the IRS before filing.
- Inconsistent Personal Info: Variations in name spelling (e.g., Robert vs. Bob), or mismatched SSN/ITIN.
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Identity Theft & Fraud Filters (Major Trigger):
- The IRS’s fraud detection systems flag returns that have characteristics similar to known identity theft schemes. An RAC-74 is a common way to halt a suspicious return for verification without accusing anyone of