IRS letter help
Got an IRS CP05 Notice? What It Means and What to Do
A CP05 means the IRS is holding your return to verify income, withholding, credits or business income before it releases the refund. If you filed the return, you usually do not need to do anything yet.
Reviewed by LaToya Clark-Thompson, FounderLast updated
What this letter is
The CP05 tells you the IRS needs more time to verify your income, income tax withholding, tax credits or business income. Some returns are selected for this check so the IRS can confirm income, expenses and credits are reported correctly. The IRS says plainly that it does not mean you made an error or were dishonest.
It is not an audit notice and it is not an identity verification letter. If the IRS needs you to confirm your identity, it sends a different letter, such as the Letter 5071C or Letter 4883C.
Why you got it
- Withholding on the return could not yet be matched to what employers reported on Forms W-2
- The return claims refundable credits, such as the earned income credit or the additional child tax credit, that the IRS checks before release
- Schedule C income or expenses look out of line with the forms the IRS has
- The return was selected at random for verification
What to do now
- Check that you, or someone you authorized, actually filed the return the notice is about
- If you filed it, no action is needed. Track the refund online or in the IRS app
- The IRS asks you to allow up to 60 days before reaching out, and not to call until 60 days after the notice date
- Keep your W-2s, 1099s and the records behind any credits together in case a follow-up letter asks for them
- If you did not file a return, someone may have used your information. The IRS asks you to complete Form 14039, Identity Theft Affidavit, sign it, and mail it to the address at the top of the notice
What happens if you ignore it
If you filed the return, ignoring the CP05 is mostly fine, because there is nothing to send yet. What matters is the next letter. If the IRS cannot verify something on its own, it writes again asking for documents, and that letter has its own response date. If no letter comes and the refund has not arrived after the 60 days the IRS mentions, that is the point to call.
If you did not file and you ignore it, a fraudulent return may stay on your account and delay your real one. That is worth acting on the day the letter arrives.
How we help
If we prepared your return, we already have the forms behind it and can check the likely reason for the hold. If someone else prepared it, we review the return against your W-2s, 1099s and credit records so you are ready if the IRS asks. If the review finds an error, we prepare the amended return.
If a follow-up turns into an examination, representation is handled by the independent licensed CPA we work with, with our office coordinating. See IRS audit defense.
What to send us
- A photo or scan of every page of the CP05, through the client portal
- The return for that year
- Your W-2s and 1099s, and records for any credits or business income claimed: dependents’ school or medical records, business income and expense records
- Any later IRS letter as soon as it arrives
Frequently asked questions
Does a CP05 mean I am being audited?
No. The CP05 says the IRS needs more time to verify income, withholding, credits or business income, and the IRS states it does not mean you made an error or were dishonest. If the IRS later needs documents or wants to examine the return, it sends a separate letter. A Letter 566 or similar letter is what an exam looks like.
How long should I wait after a CP05 before calling the IRS?
The IRS asks you to allow up to 60 days and not to call until 60 days after the date on the notice. Calling before then generally gets the same answer the notice gives. If 60 days pass with no refund and no further letter, call the number on the notice with your return in front of you.
What if I get a CP05 for a return I did not file?
Then someone may have filed using your information. The IRS asks you to complete Form 14039, Identity Theft Affidavit, sign it, and mail it to the address at the top of the CP05. Use only the address and phone number on the notice itself. Is this IRS letter real? explains how to check a letter before acting.
Do I need to send documents when I get a CP05?
Not unless the IRS asks. If you filed the return, the IRS says no action is needed. Gather your W-2s, 1099s and the records behind any credits so you can respond quickly if a follow-up letter asks for them, but do not mail them in unprompted.
Not the question you had? The full tax FAQ covers more ground, and our client reviews say what the work is actually like.
Related pages
Letter 5071C
The IRS is holding a return until you confirm it is yours. Verify only through the letter’s own instructions.
Learn moreLetter 4883C
The IRS is holding a return until you verify it by phone. Call only the number on the letter.
Learn moreCP12 notice
The IRS corrected your return and your refund changed. Nothing to do if you agree; call by the date if not.
Learn moreIs this IRS letter real?
How the IRS really contacts you, what it never does, and how to check a letter safely.
Learn moreHow to read an IRS letter
Where the notice number, tax year, amount and response date sit on the page, and what each means.
Learn morePart of IRS & SC Letter Help. Not sure which service fits? Answer a few questions.
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