You filed your return. You're expecting a refund. And instead of a direct deposit, you get a CP05 notice telling you the IRS is reviewing your return. Your refund is on hold until the review is complete.
Take a breath. The CP05 is common, especially during filing season. It doesn't mean you did anything wrong. It means the IRS's system flagged your return for additional review before releasing the refund.
Why Your Return Was Flagged
The IRS uses automated filters to identify returns that might need a closer look. Common triggers include claiming credits that are frequently associated with fraud (like EITC or the Additional Child Tax Credit), significant changes from prior year returns, income or withholding that doesn't match information the IRS has received, and random selection.
Being flagged for review is not an audit. It's not an accusation. It's the IRS being careful with refunds, which honestly is what you'd want them to do. The alternative is a system where anyone can file a return claiming $20,000 in refundable credits and get the money without any verification.
What the CP05 Is Asking You to Do
Usually, nothing. The initial CP05 is informational. It tells you the IRS is reviewing your return and that you don't need to take any action unless they send a follow-up letter. The review is happening internally based on information the IRS already has.
The letter typically says to wait 60 days before calling the IRS. Calling before that timeframe usually results in the same answer: "Your return is under review, please wait."
If You Get a CP05A
The CP05A is the follow-up. This one does ask you to do something. The IRS needs documentation to verify specific items on your return. It lists exactly what they want: W-2s, 1099s, receipts for deductions, proof of residency for dependents, or other supporting documents.
You typically have 30 days to respond to a CP05A. Respond completely. Send every document they request. A partial response extends the review by months.
How Long Does the Review Take
A straightforward review where the IRS resolves everything internally (CP05 with no follow-up) typically takes 60 to 120 days. If they request documentation (CP05A), add another 60 days after you respond. Complex reviews involving identity verification, wage verification, or credit verification can take 6 months or longer.
The IRS pays interest on refunds delayed beyond 45 days from the original filing deadline, so at least you're earning something while you wait. The interest rate is the federal short-term rate plus 3%, which is not bad as far as guaranteed returns go.
When to Worry
The CP05 by itself is not a reason to worry. If the review resolves without issues, you'll get your refund plus interest for the delay. If the IRS determines everything checks out, you might even get a CP05B confirming your refund has been approved.
You should start paying attention if you receive a CP05A asking for documentation, if you haven't heard anything after 120 days, or if the review leads to a full examination (audit). At that point, the situation has escalated beyond a routine review.
What Not to Do
Don't file a second return. Some people think filing again will "restart" the process. It won't. It creates a duplicate return that delays everything further. Don't call the IRS every week asking for an update. The representatives can see the same information you can see on "Where's My Refund." Don't amend your return unless there's an actual error you need to correct.
If your CP05 review is dragging on longer than expected, or if you've received a CP05A and aren't sure how to respond, call us at (813) 229-7100. We can help move things along.