You open your mailbox and find a letter from the IRS. Your stomach drops. But before you assume the worst, read the notice carefully – because a CP05 notice is one of the least alarming things the IRS sends.
A CP05 notice means the IRS is reviewing your tax return before releasing your refund. That’s it. It’s not an audit notice. It’s not a bill. It’s not a sign that you’ve done something wrong. The IRS is simply pausing your refund while it verifies certain information on your return – usually income, withholding, tax credits, or deductions.
That said, “least alarming” doesn’t mean ignore it. How you respond to a CP05 – and to any follow-up notices that arrive afterward – determines how quickly you get your refund and whether the review stays simple or grows into something more serious.
What Is a CP05 Notice?
A CP05 notice is an IRS letter informing you that your tax return is under review and your refund is being held while the review is completed. The IRS uses this notice when it needs to verify specific information before it releases payment to you.
The IRS sends CP05 notices for several reasons:
- Your reported income doesn’t match wage and income data the IRS received from your employer, bank, or other payers
- You claimed tax credits – such as the Earned Income Tax Credit, Child Tax Credit, or education credits – that require additional verification
- Your withholding amounts appear inconsistent with reported wages
- Your return was selected as part of a random review cycle
- The IRS needs to verify your identity before processing your refund
- Deduction amounts appear unusually high relative to your income or filing history
The notice itself will explain which aspect of your return is under review. Read it closely – the specific items identified tell you what documentation you may need to have ready if the IRS follows up.
What a CP05 Notice Does Not Mean
The word “review” causes panic in most people, but context matters. A CP05 notice is not:
- An audit notice – A formal IRS examination is a separate process triggered by a different set of notices. A CP05 is a pre-refund verification, not a full examination of your return.
- A bill or demand for payment – You don’t owe money at this stage. The IRS is reviewing a refund you’re waiting to receive, not collecting a balance you owe.
- Evidence of fraud or criminal suspicion – CP05 notices are common. Millions are sent every tax season. Receiving one does not mean the IRS suspects wrongdoing.
- A final determination – Nothing has been decided yet. The review is ongoing.
Most CP05 reviews resolve without any action from the taxpayer. The IRS completes its verification, approves the return, and releases the refund. The delay is frustrating, but the outcome is usually fine.
What Happens After You Receive a CP05 Notice
The CP05 notice tells you to wait. The IRS states it will complete its review within 60 days. During that time, you don’t need to call the IRS, send documents, or take any other action unless a follow-up notice arrives requesting something specific.
After the review, one of three things happens:
Your refund is approved in full. The IRS verified everything, found no issues, and releases your refund. This is the most common outcome. You’ll receive your refund by direct deposit or check, typically within a few weeks of the review completing.
Your refund is adjusted. The IRS found a discrepancy – perhaps a small income mismatch or a credit calculation difference – and adjusts your refund amount accordingly. You’ll receive a separate notice explaining the change and the revised amount.
The IRS sends a follow-up notice requesting documentation. This is where the situation requires your attention. The follow-up will be either a CP05A or CP05B notice, each with specific requirements and a 30-day deadline.
CP05A and CP05B: When the IRS Needs More From You
The original CP05 notice doesn’t ask you to do anything. But if the IRS cannot complete its verification using the information it already has, it sends one of two follow-up notices.
CP05A Notice
A CP05A notice means the IRS needs you to provide documentation to verify the income, withholding, or credits claimed on your return. The notice will specify exactly what it needs – typically one or more of the following:
- Pay stubs or earnings statements covering the tax year
- W-2s or 1099s from employers or payers
- Bank statements showing income deposits
- Documentation supporting tax credit claims (birth certificates, school records, proof of residency for dependent-related credits)
- Records of tax payments made or withholding amounts
The CP05A comes with a 30-day deadline to respond. Missing this deadline can result in the IRS denying your refund or adjusting your return without your input. Respond by the date shown on the notice, send copies (not originals) of everything requested, use certified mail with return receipt, and keep copies of everything you submit.
CP05B Notice
A CP05B notice is similar to the CP05A but typically focuses on verifying business income or self-employment income specifically. If you reported Schedule C income, rental income, or other non-wage income, the IRS may need supporting records such as business bank statements, profit and loss records, or documentation of business expenses.
Like the CP05A, the CP05B carries a 30-day response deadline. The same documentation guidelines apply – copies only, certified mail, retain everything.
What to Do When You Receive a CP05 Notice
For the initial CP05 – the one that simply informs you of the review – your immediate steps are straightforward.
Read the notice completely. Note the notice date, the tax year under review, and any specific items the IRS has identified. Some CP05 notices describe the issue in general terms; others identify specific lines or credits being examined.
Gather your supporting records now. You don’t need to send anything yet, but pull together your W-2s, 1099s, pay stubs, and any documentation related to credits you claimed. If the IRS follows up with a CP05A or CP05B, you’ll need these documents quickly.
Check your IRS online account. The IRS online account at IRS.gov lets you see return and transcript information, payment history, and any notices or letters the IRS has issued. This can give you earlier visibility into what the review involves and whether any follow-up action has been initiated.
Wait for the 60-day window to pass. Unless the notice instructs you to do something specific, wait. Calling the IRS before the 60 days are up typically results in being told to wait – the review is still in process and agents cannot expedite it over the phone.
Mark your calendar. Note the 60-day window from the notice date. If you haven’t received a refund or a follow-up notice after 60 days, then it’s appropriate to call the IRS at the number listed on your CP05 notice to ask for a status update.
If You Received a CP05 via Certified Mail
If your CP05 arrived by certified mail – meaning you had to sign for it – that delivery method is a signal to pay closer attention. The IRS typically reserves certified mail for IRS notices that involve deadlines, legal significance, or situations requiring confirmed delivery.
A CP05 delivered by certified mail doesn’t change what the notice says, but it suggests the underlying issue may be more significant than a routine verification. Review the notice carefully for any deadlines or specific instructions. If the certified delivery coincides with other IRS correspondence – particularly anything related to a balance due, identity verification, or audit – consider consulting a tax professional before responding.
CP05 Notice and Refund Delays: What to Expect in 2026
The IRS processes tens of millions of tax returns each filing season, and CP05 reviews are common. In 2026, refund timelines have been affected by IRS staffing levels, increased identity verification efforts, and enhanced screening for fraudulent refund claims.
If you receive a CP05 notice, a realistic timeline looks like this:
- Days 1-60: IRS completes its review. No action required from you unless you receive a follow-up notice.
- Days 60+: If no refund or follow-up has arrived, contact the IRS using the number on your notice to check status.
- If CP05A or CP05B arrives: You have 30 days to respond with the requested documentation. Respond within that window or your refund may be denied or adjusted.
- After documentation submitted: The IRS typically completes its review within 45-60 days of receiving your response.
Total time from receiving a CP05 to receiving a refund commonly runs 3 to 5 months when a follow-up response is required. For reviews that resolve without additional documentation, refunds often arrive within 6 to 10 weeks of the original CP05 notice date.
When a CP05 Notice Connects to Larger IRS Issues
Most CP05 notices are exactly what they appear to be – a routine pre-refund verification. But sometimes a CP05 is one piece of a larger picture.
If you receive a CP05 alongside – or shortly before or after – notices related to a balance due, an audit, or collection activity, the situations may be connected. A return under review may be escalated to formal examination if the IRS discovers significant discrepancies during the verification process. This is not common, but it happens.
Signs that a CP05 situation is becoming more complex include:
- Multiple IRS notices arriving in the same period covering the same tax year
- A CP05A or CP05B that requests documentation far beyond what you’d expect for your return
- IRS phone representatives who indicate the return has been referred elsewhere or that there are issues beyond a standard review
- Notices referencing fraud penalties, identity theft, or examination activity
If any of these apply, speaking with a tax attorney for audit defense before responding is the right move. Attorney-client privilege protects what you share from the moment you make that call, which matters if the situation escalates.
How to Respond to a CP05A or CP05B: Documentation Tips
If you receive a follow-up notice, the quality of your response directly affects how quickly the IRS resolves the review and releases your refund. A disorganized response creates more questions. A complete, well-organized response closes the review faster.
Practical tips for responding to a CP05A or CP05B:
- Respond to every item requested. If the notice asks for documentation on three specific items, provide documentation on all three. Partial responses extend the timeline.
- Send copies, never originals. The IRS does not return submitted documents. Keep originals and send photocopies only.
- Include your name, Social Security number, and the tax year on each page. Documents can become separated during processing. Make sure every page is identifiable on its own.
- Include the response stub from the notice. The CP05A and CP05B notices include a detachable response stub. Send it with your documentation so your response is matched to the correct case file.
- Use certified mail with return receipt. This gives you proof of delivery – the date the IRS received your response. That date matters if there’s ever a question about whether you responded within the deadline.
- Keep complete copies of everything you send. If the IRS later claims it didn’t receive your documentation, your certified mail receipt and document copies are your proof.
Frequently Asked Questions About CP05 Notices
How long does it take to get a refund after a CP05 notice?
If no follow-up is required, the IRS typically completes its review within 60 days and releases the refund shortly after. If you receive a CP05A or CP05B and respond with the requested documentation, expect an additional 45 to 60 days after your response before the refund is released. Total time from CP05 notice to refund commonly runs 10 to 16 weeks in cases requiring follow-up documentation.
Do I need to call the IRS when I get a CP05 notice?
Not immediately. The CP05 notice doesn’t require any action from you – it’s an informational notice telling you your refund is delayed while a review is completed. Wait the full 60 days. If no refund or follow-up notice has arrived after that point, then call the IRS at the number on the notice to ask for a status update.
Will a CP05 notice affect my tax refund amount?
It might. If the IRS review finds a discrepancy – an income mismatch, a credit that doesn’t fully qualify, or a calculation error – your refund amount may be adjusted before it’s released. The IRS will send a separate notice explaining any changes. In many cases, the refund is approved for the full amount originally expected.
Can a CP05 notice lead to an audit?
Most CP05 reviews resolve without becoming formal audits. However, if the IRS finds significant issues during the review – substantially unreported income, fraudulent credit claims, or other major discrepancies – the case can be escalated to a full examination. This is not the typical outcome, but it happens in cases where the review uncovers meaningful problems.
What if I receive both a CP05 and a CP2000 notice?
A CP2000 notice is a separate IRS process – it’s a proposal to change your return because the IRS received income information from third parties that doesn’t match what you reported. If you receive both a CP05 and a CP2000, they involve different issues and require separate responses. Don’t ignore either one. If the combination is confusing, a tax professional can help you prioritize and respond correctly to both.
What happens if I don’t respond to the CP05A or CP05B?
Ignoring a CP05A or CP05B notice – the follow-up notices that request specific documentation – is a serious mistake. These notices carry 30-day deadlines. If you don’t respond, the IRS can deny your refund entirely, adjust your return based on what it has on file without your input, and potentially assess additional taxes. If you receive one of these follow-up notices, respond by the deadline shown on the form.
Can I get professional help with a CP05 notice?
Yes, and for straightforward CP05 situations, even basic assistance from a tax preparer or enrolled agent can help you organize your documentation response. For CP05 situations that involve large refund amounts, complex income situations, or that appear connected to other IRS activity such as audit notices or collection letters, a licensed tax attorney provides the strongest protection – including attorney-client privilege that covers everything you discuss from the first conversation.
What does it mean if my CP05 notice arrived by certified mail?
The IRS uses certified mail when it needs confirmed delivery – typically for notices involving deadlines, collection actions, or legally significant communications. A CP05 arriving by certified mail doesn’t change what the notice says, but it signals the IRS considered the communication important enough to require proof of delivery. Review the notice carefully for deadlines and consider whether other IRS correspondence you’ve received recently connects to this review.
Dealing with a CP05 Notice That Isn’t Resolving
Most CP05 reviews resolve within the timeframes the IRS provides. But sometimes reviews stall – the 60 days pass, no refund arrives, and follow-up calls to the IRS produce no clear answers.
If your CP05 review has dragged beyond the IRS’s stated timeline without resolution, the Taxpayer Advocate Service (TAS) is available to help. TAS is an independent organization within the IRS that assists taxpayers experiencing significant hardship due to IRS delays. You may qualify for TAS assistance if the delay is causing financial hardship, if you’ve received conflicting information from the IRS, or if normal IRS channels haven’t resolved your issue after multiple contacts.
A tax attorney can also intervene directly with the IRS on your behalf through a Power of Attorney (Form 2848), communicate with the IRS review team, and in some cases accelerate resolution of reviews that have stalled without clear explanation.
Silver Tax Group represents taxpayers at every stage of IRS notice and review processes nationwide. If you have questions about a CP05 notice, need help responding to a CP05A or CP05B, or are concerned that your review is expanding into something larger, call us for a free consultation.
