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The IRS communication tells you they have your return and are working on it.
Follow the instructions in the letter from the IRS.
If the IRS has sent a letter requesting that you verify your identity, then they do indeed have your filed and accepted tax return, but you have some extra steps and instructions to follow before they will process your tax return.
Sometimes the IRS chooses returns randomly to request verification of identity and sometimes there is something on the return that triggers the request. No matter why the IRS has required you to verify your identity, you need to follow their instructions in order to receive your refund. If you do not verify your identity you will not get your refund.
https://www.irs.gov/identity-theft-fraud-scams/identity-verification-for-irs-letter-recipients
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