The LTR 446C tells you your refund is being held while the IRS verifies specific items on your return. This is more targeted than a general review (CP05). The IRS has identified particular credits, deductions, or income items that need substantiation before the refund can be released.
Common Verification Items
Wage and withholding verification is the most frequent. The IRS wants to confirm that the W-2 income and withholding on your return are legitimate. Other common items include education credits (American Opportunity Credit is heavily scrutinized), EITC and qualifying child information, head of household filing status, and large or unusual deductions.
How to Respond
The LTR 446C lists what documentation the IRS needs. Send everything requested. For wage verification, provide W-2s, pay stubs, and sometimes a letter from your employer confirming employment. For credits, provide the supporting forms and documentation (1098-T for education, school records for EITC qualifying children).
Respond by the deadline. Include the tear-off stub. Use certified mail. Keep copies. The standard response protocol applies.
Timeline
After the IRS receives your documentation, allow 6 to 9 weeks for processing. If everything checks out, the refund is released. If additional verification is needed, you'll receive another letter. The total process from LTR 446C to refund can take 2 to 4 months depending on complexity.
If your refund is being held and you need help, call us at (813) 229-7100.