What Letters 5316C / 5317C is
5316C acknowledges a Form 14039-B or identity theft claim within 30 days of receipt; 5317C is used to request the form or documents, as an interim letter, and as the closing letter, including a no-identity-theft determination that must "include the specific reason(s)" (IRM 25.23.9.5.1(5), 25.23.11.8.1.6). Business identity theft indicators generate no systemic notices; every letter is manual.
The deadline
30 days to respond to a 5317C request; the case is suspended 45 days (60 for a foreign address).
What to do
Respond with the documents listed for your entity type and a copy of the notice that started it. No reply closes the case as not identity theft and releases any collection hold.
Form 14039-B and what the IRS does with it
Business identity theft is reported on Form 14039-B, the business version of the identity theft affidavit. It covers four situations: a return was filed under the business's EIN that the business did not file, information returns (W-2s or 1099s) were issued under the EIN that the business did not issue, an EIN was obtained in the business's name without authorization, or the business has some other reason to believe its EIN is being misused. Unlike the individual program, where filters and notices run automatically, every step on the business side is manual. A caseworker reads the affidavit, acknowledges it with Letter 5316C within about 30 days, asks for whatever is missing with Letter 5317C, researches the account, reverses or flags the fraudulent items, and closes the case with another 5317C that states the determination. If the determination is that no identity theft occurred, the letter must say why.
The IRS does not accept a 14039-B for a return that is already being held in the identity-theft filters; Letter 6042C covers that case, and filing the affidavit there only opens a duplicate case.
Answering a 5317C request
The request letter lists the documents the caseworker needs for your entity type, and the list is mostly proof that the business exists and that you speak for it: formation documents, the CP 575 or a Letter 147C, a government ID for the officer or owner signing, and copies of the notices or returns that revealed the problem. Send everything asked for in one package, with a cover letter that restates what happened and what you want done (the fraudulent return removed, the fraudulent 1099s disassociated, the fraudulent EIN closed), and keep proof of mailing; the case is suspended for 45 days waiting for your reply, and silence closes it as not identity theft and releases any collection hold that was placed. If the fraudulent filings produced a balance that is now in collection, say so on the first page so the caseworker places the hold before anything else. The business identity theft guide walks through the affidavit, and the Form 14039-B kit has the cover letter and document checklist.
Questions about Letters 5316C / 5317C
Who receives Letters 5316C / 5317C?
Payer. 5316C acknowledges a Form 14039-B or identity theft claim within 30 days of receipt; 5317C is used to request the form or documents, as an interim letter, and as the closing letter, including a no-identity-theft…
What is the deadline on Letters 5316C / 5317C?
30 days to respond to a 5317C request; the case is suspended 45 days (60 for a foreign address).
What should I do when Letters 5316C / 5317C arrives?
Respond with the documents listed for your entity type and a copy of the notice that started it. No reply closes the case as not identity theft and releases any collection hold.
Is Letters 5316C / 5317C about my own income tax?
No. This decoder covers information reporting and withholding: the notices a payer, filer or payee sees because of Forms 1099, W-2, 945 and the TINs on them. Individual income-tax notices follow a different track.
Have a different notice? The IRS notice decoder lists all 77 in the order they tend to arrive.