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Published:   |   Last Updated: October 28, 2024

CP05

We’re Holding Your Refund 

Where am I on the Roadmap?

Overview

The CP05 notice is mailed to taxpayers to notify them that the IRS needs more time to verify your income, income tax withholding, tax credits and/or business income.

I need more information

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What does this mean to me?

The IRS received your tax return and is verifying your income, income tax withholding, tax credits, or business income based on the information reported to the IRS under your name and Taxpayer Identification Number (Social Security Number or Individual Taxpayer Identification Number) by employers, banks, or other payers. After the IRS finishes its review, you may be required to verify your income, tax credits, income tax withholding or business expenses you claimed before your refund will be released or applied as an overpayment to next year’s estimated tax. 

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How did I get here?

You filed your tax return and the IRS received it. The IRS is holding your refund while it is verifying the accuracy of your return, including one or more of the following you may have reported: credits, income (e.g., wages) and withholding that were reported on your return. 

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Check the return address

The first thing to do is to check the return address to be sure it’s from the IRS and not another agency. 

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If you didn’t file

Call the IRS immediately as you may be a victim of tax-related identity theft. Someone else may have used your personal information to file this return. Download and complete the Form 14039, Identity Theft Affidavit PDF on paper for faster service. Once you have filled out the form, sign it and mail it to the address on the top of your notice.


Note: Authorized third parties may assist taxpayers with potential identity theft issues.

Complete and send the IRS a Form 2848, Power of Attorney and Declaration of Representative, to authorize someone (such as a certified public accountant) to represent you before the IRS. The IRS encourages you to be available with your authorized representative on the call to help verify your identity.  If you want to have someone else assist you on the call and have not completed Form 2848, you and that third party must call the IRS together and you must participate in the call. 

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If You Filed a Return

No action is required at this time. The review process could take up to 60 days, as the IRS could be reviewing various items shown on your tax return,issues such as wages and withholding, or credits or expenses.

If, after 60 days from the date of this notice, you have not received your refund or heard from the IRS, contact the IRS at the toll-free number listed at the top right corner of your notice. 

If the entries reported on your return cannot be verified, you may be asked to submit documents verifying your wages and withholding, tax credits and/or business income and expenses that were reported. 

Once the IRS finishes its review, it may send your refund, ask for additional information, or deny all or part of your refund. If you don’t agree with the denial, you’ll have an opportunity to appeal. 

If you made an error on your return or need to change the information reported, you should file a Form 1040-X, Amended U.S. Individual Income Tax Return, as soon as possible to limit any potential penalties and interest. 

Once you have successfully verified the entries on your tax return, it may take up to sixteen weeks for you to receive your refund or apply the overpayment to next year’s estimated tax. However, if there are other issues, you may receive a notice asking for more information, and this may delay your refund. 

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Filing tips for the next year

Review all of your income and withholding documents for completeness and review your return to make sure you are eligible to claim all income, credits and business income you reported.

General Resources

Understanding your notice or letter

Get Help topics

Browse common tax issues and situations at TAS Get Help

If you still need help

The Taxpayer Advocate Service is an independent organization within the IRS. TAS helps taxpayers resolve problems with the IRS, makes administrative and legislative recommendations to prevent or correct the problems, and protects taxpayer rights. TAS helps all taxpayers (and their representatives), including individuals, businesses, and exempt organizations. You may be eligible for free TAS help if your IRS problem is causing financial difficulty, if you’ve tried and been unable to resolve your issue with the IRS, or if you believe an IRS system, process, or procedure just isn’t working as it should.

TAS has offices in every state, the District of Columbia, and Puerto Rico. To find your local advocate’s number:

Low Income Taxpayer Clinics (LITCs) assist individuals whose income is below a certain level who need to resolve tax problems with the IRS. They also provide education, outreach, and information on taxpayer rights to individuals who speak English as a second language. LITCs represent taxpayers in disputes before the IRS and courts and help taxpayers respond to IRS notices and correct account problems. Services are offered for free or a small fee. LITCs are independent from the IRS and TAS. For more information or to find an LITC near you, see the LITC Page or Publication 4134, Low Income Taxpayer Clinic List. You can also request Pub. 4134 by calling 800-TAX-FORM (800-829-3676).

View our Interactive Tax Map

Let us help you navigate your way through the IRS. Visit our interactive tax map to see where you are in the tax process.

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Did you know there is a Taxpayer Bill of Rights?

The taxpayer Bill of Rights is grouped into 10 easy to understand categories outlining the taxpayer rights and protections embedded in the tax code.

It is also what guides the advocacy work we do for taxpayers.

Read more about your rights