The CP88 is similar to the CP63 but typically appears when the IRS has already taken action on the unfiled years, such as filing a Substitute for Return or issuing an assessment. Your current year refund is being held because the IRS has identified outstanding issues with prior year returns.
The Difference Between CP63 and CP88
The CP63 freezes your refund because the IRS doesn't have a return for a specific year. The CP88 may freeze your refund because the IRS has already assessed tax for that year (through an SFR or other process) and the refund is being held pending resolution. The distinction matters because the resolution path is slightly different.
What to Do
If the IRS filed an SFR and assessed tax based on it, you should file your own return for that year. Your return will replace the SFR assessment, typically resulting in a lower balance because your return includes deductions and credits the SFR didn't. Once your return is processed, the refund freeze should be released and any remaining refund issued to you.
If prior year balances exist, the IRS may offset your current year refund against those balances before releasing any remainder. Review the CP88 to understand which years are affected and what the IRS is holding.
File All Delinquent Returns
Don't just file for the year identified on the CP88. File all delinquent returns. If you have three years of unfiled returns and you only address one, the freeze will continue for the other two. Get current on all filing obligations to clear the freeze and prevent it from recurring next year.
Need help getting caught up on unfiled returns? Call us at (813) 229-7100.