A CP05 letter from the IRS tells you the agency is holding your federal refund while it verifies information on your return. The hold lasts up to 60 days, and in most cases you don’t have to do anything except wait.1Internal Revenue Service. Understanding Your CP05 Notice It isn’t an audit. It’s a routine check the IRS runs when something on your return doesn’t immediately line up with the W-2s, 1099s, and other forms already in its system. If everything reconciles, your refund goes out. If it doesn’t, you’ll get a follow-up notice telling you what to send.
Why Your Return Got Flagged
The IRS compares what you reported against information already filed by employers, banks, and government agencies.2Taxpayer Advocate Service. CP05 – We’re Holding Your Refund When something doesn’t match, the return goes into verification. The common triggers:
- Wages, freelance income, or investment earnings on your return that don’t match what third parties reported.
- Federal withholding you claimed that doesn’t match employer records.
- Refundable credits — the Earned Income Tax Credit, Child Tax Credit, Additional Child Tax Credit, or American Opportunity Tax Credit — which the IRS verifies for eligibility before releasing a refund.3Internal Revenue Service. Letter or Audit for EITC
- Business income or expenses on a Schedule C that raised questions during processing.
If you claimed the Earned Income Tax Credit or Additional Child Tax Credit, your refund was already subject to a separate PATH Act hold that prevents those refunds from going out before mid-February.4Internal Revenue Service. When to Expect Your Refund if You Claimed the Earned Income Tax Credit or Additional Child Tax Credit A CP05 on top of that means additional review time. The two delays can stack.
What You Should Do Right Now
Usually nothing. The IRS is explicit: unless the letter specifically asks you to send documents, take no action.1Internal Revenue Service. Understanding Your CP05 Notice Calling before the 60-day window closes won’t move things along, because representatives can’t push a return through the verification queue.
Use the wait to do a quiet review of your own paperwork. Pull your W-2s, 1099s, and any other tax forms and compare them line by line against the numbers on your return. Look for a transposed digit, a missing 1099 from a side gig, or a withholding figure that’s off. If you find a mistake, resist the urge to file an amended return. The IRS’s guidance during a CP05 hold is to let the review finish. Filing a 1040-X while the original return is under review tends to complicate the case rather than resolve it. If the IRS ends up asking for corrections, that’s when to amend.
How Long the Hold Lasts
The IRS asks for up to 60 days to finish verification. That clock starts on the date printed at the top of the notice, not the day it landed in your mailbox, which could be a week or more later.2Taxpayer Advocate Service. CP05 – We’re Holding Your Refund Many reviews close well inside 60 days when the underlying issue is a straightforward data match. More complex situations — multiple credits, business income, mismatched withholding — can take the full window.
If 60 days pass from the notice date and nothing has arrived, call the toll-free number on your CP05.1Internal Revenue Service. Understanding Your CP05 Notice At that point a representative can actually look into what’s happening with your case.
Tracking Your Refund During the Hold
Two tools help you keep tabs on the review. First, your IRS Online Account at irs.gov lets you view digital copies of any notices the IRS has issued, so you can confirm the CP05 is legitimate and see whether follow-up correspondence has been sent.5Internal Revenue Service. Online Account for Individuals
Second, your tax transcript. Request it through the online account or by mailing Form 4506-T. Two codes matter here. Code 570 means the IRS has flagged a delay in processing your return. Code 971 means the IRS has sent or is sending a notice asking for more information.6Taxpayer Advocate Service. Identity Verification and Your Tax Return Seeing 570 without a matching 971 generally means the review is still running and nothing is required of you yet.
What Happens After the Review
One of three things:
- Refund released. Everything checked out, and the refund goes out by direct deposit or paper check.
- Refund adjusted. The IRS found a math error or a discrepancy that changed your refund amount and sends a CP12 explaining exactly what was changed. If you disagree, the notice includes a deadline and phone number for contesting the change. Missing that deadline can cost you the right to appeal.7Internal Revenue Service. Understanding Your CP12 Notice
- More documentation needed. The IRS couldn’t verify your return with the information it has and sends a follow-up notice, usually a CP05A, asking for supporting documents.
Most CP05 reviews end with option one.
If You Get a CP05A Asking for Documents
A CP05A means the IRS still can’t confirm what you reported. The notice tells you exactly what to send, which typically includes:8Internal Revenue Service. Understanding Your CP05A Notice
- At least three pay stubs or check stubs, including your year-end statement. The IRS specifically says not to send a copy of your W-2.
- A letter on company letterhead from your employer confirming employment dates, wages, and withholding.
- Statements showing retirement income, if that applies.
The response deadline is printed on the notice. Take it seriously. If you don’t respond, the IRS proceeds with the information it has, which can mean denying deductions or credits it couldn’t verify and assessing additional tax.9Internal Revenue Service. Notice CP05A Include a copy of the notice itself with your response so the IRS can match your documents to the case.
If your employer has closed or you can’t get the exact documents listed, send what you have. Bank statements showing direct deposits on pay dates, for example, can support wage income even without a formal pay stub.
If You Never Filed the Return
If a CP05 shows up for a return you didn’t file, someone may have used your Social Security number to submit a fraudulent return in your name.1Internal Revenue Service. Understanding Your CP05 Notice Act right away. Download Form 14039, the Identity Theft Affidavit, from irs.gov, complete it, and mail it together with a paper copy of your actual return to the IRS address on your CP05.10Internal Revenue Service. IRS Identity Theft Victim Assistance – How It Works That flags your account so the IRS knows the return under review isn’t yours. Identity theft cases take longer to resolve than a standard CP05 hold, but reporting early gets the process started.
Interest If Your Refund Is Delayed a Long Time
Federal law requires the IRS to pay interest on refunds it holds too long. If your refund isn’t issued within 45 days after your filing deadline (or 45 days after you filed, if you filed late), interest starts accruing on the overpayment.11Office of the Law Revision Counsel. 26 USC 6611 – Interest on Overpayments The rate changes quarterly; for the first quarter of 2026, the individual overpayment rate is 7 percent.12Federal Register. Quarterly IRS Interest Rates Used in Calculating Interest on Overdue Accounts and Refunds of Customs
A CP05 hold that wraps up inside the 45-day window won’t generate any interest. If a CP05A extends the delay by months, you should see interest added when the refund eventually arrives. The IRS calculates it automatically.
Spotting a Fake CP05
Scammers send fake IRS notices to steal information or extract payments. A real CP05 will never ask you to pay money, hand over a credit card number, or click a link. The IRS makes initial contact by mail. It doesn’t reach out first through email, text, or social media.13Internal Revenue Service. Ways to Tell if the IRS Is Reaching Out or if Its a Scammer
To confirm a letter is legitimate, log into your IRS Online Account and check whether the notice appears in your records, or call the IRS directly using the number on irs.gov rather than the number on the letter. Forward suspicious emails to phishing@irs.gov. Fake notices arriving by physical mail can be reported to the U.S. Postal Service and the Federal Trade Commission.14Internal Revenue Service. Report Fake IRS, Treasury or Tax-Related Emails and Messages
When to Bring in the Taxpayer Advocate Service
If the hold drags well past 60 days and the IRS isn’t responding, the Taxpayer Advocate Service is an independent organization inside the IRS that can step in. TAS doesn’t handle every case. You generally need to show that the delay is causing real financial harm, such as being unable to pay rent, buy groceries, or keep the utilities on. TAS also takes cases where the IRS has failed to respond within 30 days of its own promised timeline, or where an IRS process clearly broke down.15Taxpayer Advocate Service. Can TAS Help Me With My Tax Issue
You can request TAS help online through the Taxpayer Advocate website or by calling your local TAS office. Bring your CP05 notice, a timeline of contacts with the IRS, and documentation of the financial impact. TAS cases move faster than the standard queue, though they still take time. The earlier you reach out after the 60-day mark, the sooner they can start.