What does it mean when the IRS says your refund is being reviewed?

Asked by: Jadon Koepp  |  Last update: February 9, 2022
Score: 4.5/5 (60 votes)

The review means that your return is pending because IRS is verifying information on your tax return. They may contact you before processing your return.

Why is the IRS reviewing my refund?

The IRS could verify your information and determine that you owe more in taxes. ... In that case, the IRS would look at every aspect of your return to determine whether you've reported your income properly and paid the appropriate amount of tax.

How long does it take for the IRS to review your refund?

It is taking the IRS more than 21 days to issue refunds for some 2020 tax returns that require review including incorrect Recovery Rebate Credit amounts, or that used 2019 income to figure the Earned Income Tax Credit (EITC) and Additional Child Tax Credit (ACTC).

Why did I get a letter from the IRS saying they are reviewing my taxes?

A CP05 notice is a letter from the IRS telling you that your tax return is being reviewed. ... The IRS may be reviewing your income, your tax withholding, tax credits you may have claimed on your return (such as Earned Income Tax Credit or Additional Child Tax Credit), or even Schedule C business income.

What happens if your tax return is under review?

When the IRS officially places your return under review, you will receive a CP05 notice, and the processing of your refund will be delayed until the review is complete.

What does it mean when IRS says your refund is being processed 2020?

30 related questions found

How long does a cp05a review take?

Why is my return being reviewed? We select some returns to determine if income, expenses, and credits are being reported accurately. This doesn't mean you made an error or were dishonest. Please allow us 60 days to complete our review before contacting us.

Is an IRS review the same as an audit?

A review of refund letter from the IRS is not the same thing as an audit. There are many reasons that the IRS may review or hold a refund, such as: You have unfiled or missing tax returns for prior tax years. The check was held or returned due to a problem with the name or address.

Is the IRS delaying refunds?

"IRS employees want to do more, and we will continue in 2022 to do everything possible with the resources available to us." ... The IRS says most refunds are issued within 21 days of the return being filed.

What does a letter from the IRS mean?

Every year the IRS mails letters or notices to taxpayers for many different reasons. Typically, it's about a specific issue with a taxpayer's federal tax return or tax account. A notice may tell them about changes to their account or ask for more information. It could also tell them they need to make a payment.

Why am I getting a letter from the Department of Treasury 2021?

The letters are meant to help with your 2021 tax returns by more thoroughly explaining how to claim your economic impact (stimulus) payments, which aren't taxed but still must be claimed.

Why would the IRS hold my refund for 60 days?

There are many reasons why the IRS may be holding your refund. You have unfiled or missing tax returns for prior tax years. ... The IRS is reviewing your tax return. Your refund was applied to a debt you owe to the IRS or another federal or state agency.

Is the IRS still backlogged?

"Paper is the IRS's Kryptonite, and the agency is still buried in it." As of late December, the IRS had backlogs of 6 million unprocessed original individual returns (Forms 1040), 2.3 million unprocessed amended individual returns (Forms 1040-X), more than 2 million unprocessed employer's quarterly tax returns (Forms ...

Why does my refund say still being processed after 21 days?

The IRS will issue most refunds in less than 21 calendar days. This could mean that all of the necessary forms were not sent to the IRS for processing. ... Your return has been flagged for identity theft or fraud.

What does under review mean ATO?

Your return appearing as "under review" just means we're manually reviewing your tax return to make sure everything is right. ... We often do some extra checks to make sure there's no issues before finalising tax returns.

How long does a CRA review take?

Our goal is to issue your notice of reassessment or a letter within 20 weeks of receiving your adjustment request. Note: COVID-19: Expect the normal timeframe to be extended to 10 to 12 weeks in most cases for processing T1 adjustments submitted by paper.

Does tax Topic 152 mean under review?

What is Tax Topic 152? Topic 152 is a generic reference code that some taxpayers may see when accessing the IRS refund status tool. ... Keep in mind this tax topic doesn't mean you made a mistake or did anything wrong when filing. It simply means your return is being processed and has yet to be approved or rejected.

How do you know if you have a fake IRS letter?

Letter Identification

Real IRS letters have either a notice number (CP) or letter number (LTR) on either the top or bottom right-hand corner of the letter. If there's no notice number or letter, it's likely that the letter is fraudulent. It's recommended you call the IRS at 800-829-1040.

How many letters will the IRS send?

As you prepare to file your 2021 taxes, you'll want to watch for two letters from the IRS to make sure you get the money you deserve. This year, the IRS is mailing two letters – Letter 6419 and Letter 6475 – to qualifying Americans. The first applies to the Child Tax Credit Payments.

How do I know if my tax refund check is real?

All U.S. Treasury checks are printed on watermarked paper. The watermark reads “U.S. TREASURY” and can be seen from both the front and back of the check when held up to a light. The watermark is light and cannot be reproduced by a copier.

Why is the IRS so far behind on refunds?

Although the backlog is not too different from last season's, it is a far higher number than the unprocessed returns the I.R.S. ... One big reason for the pileup, according to the report, is that the federal government charged the I.R.S. with administering various stimulus payments and other programs during the pandemic.

Is the IRS still processing 2020 tax returns?

He said the IRS is still processing $9.8 million tax returns from 2020. The delays are mostly due to errors in filing, some having to do with the economic stimulus payments. ... “If you don't report the correct amount, again it's going to hold up the tax return processing to who knows when,” McCarron said.

Are refunds delayed 2021?

Tax Refund Delays

In 2021, taxpayers who submitted their tax returns early had to wait a little longer than anticipated to receive their tax refund. In fact, the IRS is still processing last year's returns, according to the Treasury Department.

Will I get my refund after 60 day review?

There is ABSOLUTELY NOTHING YOU CAN DO. When the documents are entered & the return matches, your refund will be released, whether it's been 60 days or not. After 60 days you will receive instructions on how to get the information needed to have your refund released.

Does IRS review take 45 days?

Maybe. In my experience, IRS usually completes the reviews around the 45 days. ... IRS says, "If you haven't received your refund or been contacted by us within 45 days from the date of this notice, you can call us at the number provided on your notice."

How long does a cp05 review take 2021?

The review process could take anywhere from 45 to 180 days, as the IRS could be reviewing various issues such as wages and withholding, or credits or expenses shown on your tax return. Once the IRS finishes its review, it may send your refund, ask for additional information, or deny all or part of your refund.