IRS CP05 Notice: Refund Hold — Return Under Review
A CP05 notice means the IRS is holding your refund while it verifies information on your return — income, withholding, or credits — and you generally don't need to do anything unless they ask for documents.
Deadline calculator
The CP05 clock runs from the date printed on the notice — not the day you opened it.
Estimate only, based on the standard 60-day CP05 window. Your notice controls — always use the specific date printed on it.
What a CP05 actually means
CP05 reviews are usually triggered by withholding that doesn't match employer reports, credits that need verification (EITC, CTC), or identity-verification screens. It is not an audit and doesn't mean you did anything wrong.
Most CP05 reviews resolve within 60 days with either the refund released or a follow-up letter (like a CP05A) requesting specific documents. Responding fast to any follow-up is the key to getting paid sooner.
How to recognize a real CP05
The IRS sends the CP05 when it holds a refund for a pre-refund review that checks reported income, income tax withholding, tax credits, and/or business income. During that review it may contact third parties, such as employers, to confirm the figures.
- The heading reads "Message about your [year] tax return" and "We're holding your refund until we finish reviewing your tax return."
- A short bulleted list shows what may be verified: income, income tax withholding, tax credits, and business income.
- It says the IRS may contact third parties to verify information and that you can ask for a list of the third parties it contacted.
- It asks you not to call until 60 days after the notice date, because staff won't have any more information before then.
- It has a separate "If you didn't file the tax return" section with identity-theft steps, starting with Form 14039 sent with a copy of the notice.
What to do, step by step
- 1Don't file a duplicate return — it slows everything down.
- 2Watch for a follow-up letter (CP05A) requesting pay stubs, W-2s, or proof of withholding, and respond immediately if it comes.
- 3Check status with the IRS 'Where's My Refund' tool or your online account.
- 4If 60 days pass with no refund or letter, call the number on the notice, or contact the Taxpayer Advocate Service if you're in financial hardship.
Illustrative example
Example: Waiting out a CP05 the right way
Illustrative scenario: Tomas e-filed in February expecting a $3,400 refund, mostly federal withholding from a job he left in the fall. On March 20 he gets a CP05 saying the IRS is holding the refund to verify income tax withholding.
He did file the return, so he does nothing for now. He marks May 19 (60 days after the notice) on his calendar, keeps his final pay stub and W-2 together in case he's asked, and checks Where's My Refund every week or two instead of calling.
In late April the refund is released in full. If a request for documents had come instead, he would have sent the pay stub and W-2 right away. If the IRS had denied part of the refund, the notice explains he would get a chance to appeal.
Names and numbers are made up to show how this notice typically plays out.
Mistakes that make a CP05 worse
- Calling before 60 days. The notice itself says the IRS won't be able to tell you anything more before then.
- Ignoring the identity-theft section when you didn't file. If the return isn't yours, the notice tells you to send Form 14039 with a copy of the notice, and to alert your bank, the credit bureaus, and the FTC.
- Being surprised if your employer is contacted. The notice warns that the IRS may contact third parties to verify withholding or income, which is a normal part of this review.
- Assuming the outcome is all-or-nothing. When the review ends, the IRS may send the refund, ask for more information, or deny all or part of it, and a denial comes with appeal rights.
What happens if you ignore a CP05
If you filed the return, nothing is required until the IRS writes again. It will release the refund, ask for more information, or deny part of it. Missing a later request for documents is what costs money. If you didn't file the return and don't respond, the fraudulent filing under your SSN isn't stopped, and the identity problem can come back in later years.
Common questions
How long does a CP05 review take?+
The IRS asks for up to 60 days. Many resolve faster; some drag longer, especially where withholding verification with an employer is slow. Hardship cases can ask the Taxpayer Advocate Service to intervene.
Does a CP05 mean I'm being audited?+
No. It's a pre-refund verification hold, not an examination. Most filers get their full refund once verification completes.
Is a CP05 letter bad?+
Not by itself — it means your refund is delayed, not denied, and most reviews end with the full refund released. It becomes a problem only if a follow-up letter asks for documents and goes unanswered, or if the withholding on the return genuinely can't be verified.
Checked against IRS primary sources — see how we source these guides. You can verify any notice directly at IRS.gov. The dates and instructions printed on your specific notice always control. Official IRS explanation: Understanding your CP05 notice (IRS).
Received a CP05? Get it handled.
Talk to a tax specialist about your notice — free, no pressure, no judgment.