A tax return under review does not automatically mean you made a mistake, committed fraud, or are being formally audited. It is usually a standard procedure for the IRS (.gov) to verify income, credits, or deductions against W-2/1099 forms. While it will delay your refund by 45 to 180 days, most reviews conclude without further issues.
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.
Processing your refund usually takes: Up to 21 days for an e-filed return. 6 weeks or more for returns sent by mail.
The review time can vary significantly, but the IRS usually completes the process within 21 days for electronically filed returns. Most refunds are issued during this time period. For returns that require additional review or manual processing, this time frame may be longer.
The percentage of individual tax returns that are selected for an IRS audit is relatively small. From 2020-2023, less than 0.50% of individual returns were selected for audits — the lowest of any published audit rate since 1950.
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.
You may face an IRS audit after an IRS review. If the IRS reviews your information and detects inaccuracies in your tax returns, it may conduct a comprehensive audit to look into the matter further.
District offices select returns randomly sometimes for special research programs, but generally the returns are selected because they have good audit potential. The potential is discovered by a computerized system called the Discriminant Function System (DIF). In most cases, the decisionmaker is not the auditor.
This notice indicates that your tax return is under review for accuracy regarding income, tax withholding, and credits. If you receive a CP05 notice, you do not need to take any action. The IRS asks that you wait 60 days from the notice date to contact them to allow them time to review your return.
Key takeaways. Most people receive refunds within three weeks if they e-file and choose direct deposit; paper returns can take six weeks or more. Filing accurately — especially when claiming credits like the Earned Income Tax Credit— helps prevent refund delays.
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.
Once we finish our review, we may send your refund, ask for additional information, or deny all or part of your refund. If you don't agree with the denial, you'll have an opportunity to appeal. If you haven't received your refund or heard from us after 60 days, you can call us at the number listed above.
The timeline for receiving your refund after seeing Code 971 on your IRS transcript depends on the other codes that appear with it: If Code 971 is followed by Code 570 (Additional Account Action Pending): This indicates your refund is on hold. Delays can range from 2 to 6 weeks, or longer in more complex cases.
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.
Errors on or Incomplete Tax Returns: Your refund may be delayed for something as simple as a forgotten signature, mathematical errors or if the income reported by you doesn't match what your employer or other third-party payers have reported.
A review shares the goals of an audit, however, a review is not conducted with the same level of investigation or analysis as an independent audit.
Signs That The IRS Might Be Investigating You
What happens during an audit? Internal audit conducts assurance audits through a five-phase process which includes selection, planning, conducting fieldwork, reporting results, and following up on corrective action plans.
If the deductions, losses, or credits on your return are disproportionately large compared with your income, the IRS may want to take a second look at your return. Taking a big loss from the sale of rental property or other investments can also spike the IRS's curiosity.
The IRS has no maximum time limit when it comes to processing tax refunds, but after 45 days, it is required to pay interest on your refund. In most cases, you can expect the IRS to issue your tax refund within 21 days of filing your tax return.
Common IRS audit triggers