Getting mail from the IRS never feels good, especially when it means your refund just got stuck in limbo. If you’ve received a CP05 notice, you’re probably wondering what you did wrong and when you’ll actually see your money.
Here’s the reality: a CP05 notice doesn’t mean you’re in trouble. It means the IRS wants to double-check something on your return before they cut you a check. Think of it as their way of saying “we need to verify this before we send you money.”
While this review process is routine for returns that get flagged, understanding what the CP05 notice actually means and knowing how to handle it can save you weeks of stress and uncertainty.
This guide breaks down everything you need to know about CP05 notices, why the IRS sends them, and exactly how to deal with one if it lands in your mailbox.
Today, you’ll learn:
- A CP05 notice means a refund delay, not an audit: The IRS is verifying part of your return—usually income or credits—before releasing your refund. It’s a routine review, not a penalty.
- Common triggers include mismatched income and large credits: Discrepancies between your reported income and IRS records, or claiming credits like the Earned Income Tax Credit, often prompt a CP05.
- You usually don’t need to act unless asked: Unless the IRS requests documents, your job is to wait. Reviews typically resolve within 60 days.
- Mistakes, not fraud, cause most CP05 notices: Typos, missing forms, or misunderstanding credit rules are frequent reasons for review. These are fixable.
- Professional help can cut through delays: If the IRS stalls or denies your refund without clear reason, a tax pro can step in, resolve issues, and get your money moving.
What Is a CP05 Notice?
A CP05 notice is the IRS’s way of telling you they’re hitting the pause button on your tax return. Specifically, they’re taking a closer look at the income you reported and any credits you claimed before they release your refund.
This isn’t punishment. It’s just their standard procedure when something on your return doesn’t quite match up with what they have on file, or when you’ve claimed credits that trigger their review system.
Key Features of a CP05 Notice
The IRS uses automated systems that constantly cross-reference your return against third-party data. Your W-2s, 1099s, and other documents all get fed into their system. If something doesn’t align perfectly, or if you’ve claimed large refundable credits like the Earned Income Tax Credit, you might get flagged for this review.
Here’s what actually happens when you get a CP05 notice. The IRS essentially puts your return in a separate pile that says “verify this first.” They’re not accusing you of fraud or saying you made mistakes. They just want to make sure everything checks out before they send you money.
The most immediate impact? Your refund gets delayed. The IRS won’t release it until they finish their review and resolve any questions they have about your return.
Most reviews take about 60 days, though complex cases can take longer. If you don’t hear anything after 60 days, you can call them for an update.
Why Does the IRS Issue a CP05 Notice?
The IRS doesn’t randomly pick returns to mess with. Their computer systems are constantly scanning for specific red flags that suggest something needs a second look.
Common Reasons for a CP05 Notice
Income doesn’t match their records. Maybe your W-2 shows $50,000 but you reported $52,000, or a 1099 didn’t make it onto your return. These mismatches happen more often than you’d think, and the IRS wants to sort them out.
You claimed large refundable credits. If you’re getting a big refund from the Earned Income Tax Credit or Child Tax Credit, that automatically gets more scrutiny. The IRS sees a lot of fraudulent claims for these credits, so they verify the legitimate ones too.
They suspect identity theft. If someone else tried to file using your Social Security number, or if there’s unusual activity on your account, they’ll freeze everything until they can confirm it’s really you.
Something looks suspicious. Filed multiple returns? Claimed unusually high deductions? Used a different filing status than last year? Their systems notice these patterns and flag them for review.
You made filing errors. Missing forms, inconsistent information about dependents, or math errors can all trigger a review.
The key thing to understand is that most of these issues are innocent mistakes or legitimate claims that just need verification. The IRS system is designed to catch fraud, but it also catches plenty of honest taxpayers in the process.
What to Do If You Receive a CP05 Notice
Getting a CP05 notice can feel overwhelming, but handling it correctly is pretty straightforward. Here’s exactly what you need to do:
Read the notice carefully. I know it’s tempting to panic and call the IRS immediately, but take a few minutes to actually read what they’re telling you. The notice will spell out what they’re reviewing and give you a timeline (usually 60 days).
Check your paperwork. Pull out your tax return and compare it against your W-2s, 1099s, and any other documents you used when filing. Look for obvious mismatches or missing information that might explain why you got flagged.
Wait for them to finish their review. Here’s the part most people get wrong: you usually don’t need to do anything right away. The IRS will complete their review and either approve your refund or ask for more information.
Respond quickly if they ask for documents. If the IRS does need something from you, they’ll send specific instructions about what to provide and where to send it. Don’t ignore these requests, and don’t wait until the last minute to respond.
Use certified mail for anything you send. If you need to mail documents to the IRS, always use certified mail so you have proof they received it. Trust me on this one.
The biggest mistake people make is panicking and calling the IRS before the review period is over. Unless they specifically ask you to do something, your job is to wait patiently while they sort things out.
How a CP05 Notice Impacts Your Refund
Let’s be direct about this: a CP05 notice means your refund is going to be delayed. There’s no way around it. The IRS won’t release your money until they finish reviewing whatever flagged your return.
Possible Outcomes After Review
Here’s what can happen once they complete their review:
They approve everything and send your refund. This is the best-case scenario and happens more often than you might think. If everything checks out, you’ll get your full refund just like you expected, minus the delay.
They adjust your refund amount. Maybe they found a small discrepancy or disallowed part of a credit you claimed. You’ll still get money back, just not as much as you originally expected. They’ll send you an explanation of what changed.
They deny your refund entirely. This is the worst-case scenario, but it does happen. If they determine you weren’t entitled to the credits you claimed or find significant errors, you might not get anything back. In some cases, you might even owe them money.
They ask for more information. Sometimes their initial review doesn’t resolve everything, so they’ll request additional documentation from you. This extends the timeline, but it’s not necessarily bad news.
The waiting is frustrating, especially if you’re counting on that refund money. But there’s really nothing you can do to speed up their process. Calling repeatedly won’t help, and it might actually slow things down if you tie up their phone lines.
Most people get their refunds eventually, even if it takes longer than expected.
Common Issues Leading to a CP05 Notice
Understanding what typically triggers these notices can help you avoid them in the future and give you insight into what the IRS might be reviewing on your current return.
Income mismatches are the biggest culprit. This happens when the income on your return doesn’t match what employers or other payers reported to the IRS. Maybe you forgot about a small 1099 from freelance work, or there was a typo on one of your W-2s. These discrepancies are usually innocent, but the IRS system catches them automatically.
Refundable credit errors trip up a lot of people. The Earned Income Tax Credit and Child Tax Credit are goldmines for fraudsters, so the IRS scrutinizes these heavily. If you claim a credit but don’t quite meet the income requirements, or if your dependent doesn’t qualify for the reasons you think they do, you’ll likely get flagged.
Identity theft concerns are unfortunately common. If someone tries to file a return using your Social Security number, or if there’s been suspicious activity on your tax account, the IRS will freeze everything until they can verify your identity. This isn’t your fault, but it definitely complicates things.
Filing status inconsistencies raise red flags. If you filed as head of household this year but single last year, their system wants to know why. Same thing if you suddenly have dependents you didn’t claim before, or if you’re claiming the same dependents as someone else.
Most of these issues aren’t intentional mistakes. Tax law is complicated, and even professional preparers sometimes get things wrong. The key is understanding that the CP05 notice is just the IRS’s way of sorting out legitimate questions before they send you money.
Tips to Avoid Receiving a CP05 Notice
Nobody wants to deal with delayed refunds, so here’s how to minimize your chances of getting flagged in the first place:
Double-check your income numbers. Before you file, make sure every dollar on your return matches what’s on your W-2s, 1099s, and other tax documents. This sounds obvious, but you’d be surprised how often people make simple transcription errors or forget about small income sources.
Be conservative with credit claims. If you’re not 100% sure you qualify for a credit, don’t claim it. The IRS would rather you be cautious than aggressive. When in doubt, look up the actual requirements or ask a professional.
Use reliable tax software or hire someone who knows what they’re doing. Good tax software catches a lot of mistakes before you file, and experienced preparers know which situations typically trigger reviews. It’s worth the investment if it saves you months of hassle.
Keep your filing consistent year to year. If your situation hasn’t changed dramatically, your return probably shouldn’t look dramatically different from last year. Big changes in filing status, number of dependents, or types of income claimed will get noticed.
Include all the forms you’re supposed to include. Missing schedules or incomplete forms are red flags. If the software or your preparer says you need to attach something, attach it.
File electronically when possible. E-filed returns have fewer errors than paper returns, and they get processed faster. Plus, the software usually catches obvious mistakes before you submit.
None of these steps guarantee you’ll avoid a CP05 notice, but they significantly reduce your odds of getting one.
When to Get Professional Help With Your CP05 Notice
Most CP05 notices resolve themselves without you needing to hire anyone. The IRS does their review, everything checks out, and you get your refund. But sometimes you need professional help.
You should consider getting help if the IRS keeps finding problems you can’t explain. Maybe they’re questioning income you’re certain you reported correctly, or they’re denying credits you know you’re entitled to. When you’re confident you’re right but can’t get the IRS to see it that way, that’s when you need someone who speaks their language.
Significant delays are another red flag. If it’s been months since you received the CP05 notice and you’re getting nowhere with phone calls, a tax professional can often cut through the bureaucracy faster than you can.
Complex situations almost always need professional attention. If you’re dealing with multiple income sources, business ownership, rental properties, or anything beyond a straightforward W-2 situation, the expertise is usually worth the cost.
Recurring CP05 notices are a definite sign you need help. If you keep getting these notices year after year, there’s probably something systemic going wrong with how you’re filing. A professional can identify the pattern and fix it.
Frequently Asked Questions About CP05 Notices
What exactly is a CP05 notice?
It’s the IRS telling you they need to verify something on your return before they’ll release your refund. Think of it as a temporary hold, not an accusation.
Why is my refund being held up?
The IRS found something on your return that doesn’t match their records, or you claimed credits that trigger their automatic review system. It’s usually income discrepancies or refundable credits that need verification.
What documents might they ask me for?
Depends on what they’re reviewing. Could be W-2s and 1099s to verify income, birth certificates or school records to prove your dependents qualify for credits, or receipts to back up deductions you claimed.
How long does this review actually take?
They say up to 60 days, and that’s usually accurate for straightforward cases. Complex situations or cases where they need additional information from you can take longer.
Does this mean I'm getting audited?
Not necessarily. A CP05 notice is much more limited than an audit. They’re just verifying specific items, not examining your entire return with a magnifying glass.
What if I don't hear anything after 60 days?
Call the number on your notice. Don’t assume they forgot about you, but also don’t panic. Sometimes they just need more time to work through their backlog.
The bottom line is that most CP05 notices get resolved without major drama. The IRS verifies what they need to verify, and you get your refund.
Resolve CP05 Notices with Silver Tax Group
At Silver Tax Group, we’ve handled hundreds of CP05 notices. We know exactly what the IRS is looking for, how to provide it in the format they want, and how to resolve disputes when their findings don’t match reality.
We don’t just send paperwork and hope for the best. We review your entire situation, identify potential problems before they become bigger issues, and represent you directly with the IRS so you don’t have to spend hours on hold trying to get answers.
Your refund matters, and your time matters. If you’re dealing with a CP05 notice that’s dragging on longer than it should, or if you’re not sure how to respond to what the IRS is asking for, let us handle it.
Contact Silver Tax Group today. We’ll review your CP05 notice and show you exactly what needs to happen to get your refund released.
