IRS tax refund reviews generally take between 45 and 180 days if your return requires612612612 extra scrutiny, such as for errors, fraud verification, or missing information. While most e-filed returns are processed within 21 days, flagged returns, including those with Earned Income Tax Credit (EITC) claims, can face significant delays.
If the IRS is reviewing your return, it may have questions about your wages and withholding, or credits or expenses shown on your tax return. The review process could take anywhere from 45 to 180 days, depending on the number and types of issues the IRS is reviewing.
What should I do? Request an expedited refund by calling the IRS at 800-829-1040 (TTY/TDD 800-829-4059). Request a manual refund expedited to you.
When a refund is under review, the IRS may verify tax credits or return accuracy, causing delays beyond 60 days. Taxpayers should wait for official IRS notices before calling. If calls don't connect, try calling early in the day or using the IRS online tools for status updates.
The IRS uses a combination of automated and human processes to select which tax returns to audit. Not reporting all of your income is an easy-to-avoid red flag that can lead to an audit. Taking excessive business tax deductions and mixing business and personal expenses can lead to an audit.
The stages of an IRS refund are: (1) Return Received, where the IRS acknowledges receipt of your return; (2) Return Reviewed, where the return is checked for accuracy; and (3) Refund Approved/Sent, where the refund amount is finalized and issued.
Ultimately, the IRS selects returns for audit because the agency suspects that, due to understatements of income or overstatements of deductions, the taxpayer has not correctly reported their tax due. If a taxpayer is selected for audit, the IRS will send notice by mail.
Common IRS audit triggers
We could take up to 60 days to complete this review. Please don't contact us prior to 60 days from the date of this notice since we won't be able to provide you any additional information. You can check your refund status at www.irs.gov/refunds or the IRS2Go mobile app for smart phones.
A review does not automatically mean you are being audited. The IRS may only want to verify some details. If concerns persist, they might request more information. Most reviews end without a full audit.
Errors in your tax return calculations can cause delays as the IRS may need to correct them. A mismatch between your Social Security Number and the records can significantly delay your refund. Filing your tax return too early or too late can lead to delays due to IRS system updates or high processing volumes.
The IRS $600 rule refers to a change in reporting requirements for third-party payment apps (like Venmo, PayPal) for taxable income from goods and services, where platforms must send a Form 1099-K if you receive over $600 in a year, intended to capture gig economy/side hustle income, though delays and phased implementation have adjusted the timeline, with current rules for 2024 using a higher threshold ($5,000) before fully phasing to $600 for future years, but remember all taxable income, regardless of form, must always be reported.
Employees will review and either manually release the refund or confirm the error. If an error is confirmed, a notice will be sent to the taxpayer either requesting additional information or informing the taxpayer the error has been corrected through the IRS's math error authority.
Most federal tax refunds are issued within 21 days, but some may take longer if the return requires additional review. Once the IRS has accepted your return, TurboTax can't provide updates on where your refund is at. If your federal refund is late, follow these steps: Check the IRS Where's My Refund?
What causes an IRS refund delay?
The IRS Where's My Refund tool updates once daily, usually overnight, so checking more often isn't necessary; you'll see status changes as your return moves from "Refund Received" to "Refund Approved" and then "Refund Sent," with most e-filed refunds issued within 21 days, but it can take longer if there are errors or extra review needed.
The CP05 notice is mailed to taxpayers to notify them that the IRS needs more time to verify your income, income tax withholding, tax credits and/or business income.
See our Held or Stopped Refund page or the TAS video for more information. If the IRS is reviewing your return, the review process could take anywhere from 45 to 180 days, depending on the number and types of issues the IRS is reviewing. Follow these steps if you know you made a mistake, before the IRS contacts you.
One-time forgiveness, officially known as First-Time Penalty Abatement (FTA), is an IRS program that allows qualified taxpayers to have certain penalties removed from their tax accounts.
Why you received IRS Notice CP05. The IRS selected your return for review to verify one or more items on the return. The IRS is holding your refund pending the outcome of the review.
Request for additional information: The IRS might ask for more documentation or clarification on specific items. Audit: In more complex cases, the review could lead to a full audit for a more detailed examination.
Generally, the amount of time is based on your filing date and you'll get your refund within 21 days after you e-file. (Paper filed returns can take much longer.) If you file before the IRS opens, you need to wait for the IRS open date (usually in late-January) before starting the 21-day clock.
The IRS can usually assess tax, by law, within 3 years after your return was due, including extensions, or – if you filed late – within 3 years after we received your return, whichever is later. This time period is called the Assessment Statute Expiration Date (ASED).